Alternative credit data provides a clearer view of a consumer’s financial situation and ability to pay. Types of alternative credit data used across the credit spectrum include, but aren’t limited to, data from nontraditional lenders, user-permissioned account data, rental data, full-file public records and aggregation.
Mitigate risk, make smarter decisions, and seize new opportunities with reliable and relevant data. The expanded view helps shape better decision-making and credit assessment to more easily identify high-risk applicants and implement precise and predictive underwriting strategies.
Millions of consumers and businesses lack the credit history needed to establish a credit score. With alternative data sources, financial institutions can improve the methods by which they evaluate underbanked consumers to facilitate first and second chances for borrowers and increase the number of profitable loans in their portfolios.
*"Alternative Credit Data,” refers to the use of alternative data and its appropriate use in consumer credit lending decisions, as regulated by the Fair Credit Reporting Act. Hence, the term “Expanded FCRA Data” may also apply in this instance and both can be used interchangeably.
Alternative credit data is FCRA-regulated (displayable, disputable, and correctable) data that is not typically included in traditional credit reports and drives greater visibility and transparency around inquiry and payment behaviors, so businesses can gain deeper insight into creditworthiness and make more precise decisions.
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Used together with information from traditional data sources, alternative credit data leverages expanded data to obtain a more holistic consumer view. Types of alternative data sources include alternative financial services (AFS), consumer-permissioned data, full-file public records, cash flow transactions, rental payments, Buy Now Pay Later (BNPL) and propriety and verified income data.
Drawing on alternative data sources helps lenders widen their pool of applicants who meet their eligibility requirements. With clearer visibility into stability and resiliency, businesses can more easily identify risky consumers, better predict future behavior and deliver the best treatment option based on their specific situation.
We offer specialty scores and custom models to help organizations gain a deeper view of consumer credit behavior and improve prospecting, acquisitions, account management and collections. Our tailored scoring solutions combine the power of traditional and alternative credit data to enhance predictive performance across the entire credit spectrum and add the greatest performance value among credit-invisible and thin-file consumers.
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