Is That Consumer a Good or Bad Credit Risk?

Published: May 25, 2018 by Guest Contributor

According to our recent research for the State of Alternative Credit Data, more lenders are using alternative credit data to determine if a consumer is a good or bad credit risk. In fact, when it comes to making decisions:

  • More than 50% of lenders verify income, employment and assets as well as check public records before making a credit decision.
  • 78% of lenders believe factoring in alternative data allows them to extend credit to consumers who otherwise would be declined.
  • 70% of consumers are willing to provide additional financial information to a lender if it increases their chance for approval or improves their interest rate.

The alternative financial services space continues to grow with products like payday loans, rent-to-own products, short-term loans and more. By including alternative financial data, all types of lenders can explore both universe expansion and risk mitigation.

State of Alternative Credit Data

Related Posts

Open banking is revolutionizing the financial services industry. But what is open banking and how can you adapt to this new landscape?

Published: April 25, 2024 by Laura Burrows

To better understand a consumer's credit behavior over time, financial institutions must leverage trended data.

Published: March 11, 2024 by Natalie Daukas

Using alternative data for credit underwriting is a modern and efficent approach to a risk-based credit approval strategy Read more!

Published: February 13, 2024 by Laura Burrows