As more and more people are starting to look for financial freedom and success in the United States, having a good credit score has become paramount. Typically, credit files are very limited and do not offer much insight into the individual consumer. However, with alternative data, businesses can now be better informed of the everyday life of the consumer, allowing them to make more informed decisions.
Some examples of alternative data are specialty finance data or utility payment data. This information, when added to a credit file, can help those with a thin or invisible file. There are several reasons why one may not be able to boast a hearty credit file, however, regardless of those reasons, alternative data can be the key to making the unscorable, scorable. It is estimated that nearly 76 million Americans have little to no credit history. This is a costly status to hold, and including alternative data in these files can change the game for some.
Making the most of alternative data when credit scoring can help to open more financial opportunities for people across the nation. In a world where innovation has become so important, extending this innovation to the world of credit is a logical and helpful step in the right direction.
