Accessing credit can be a challenge for at least 70 million Americans, but alternative data can help score up to 32% of consumers who are seen as unscorable. Many Americans either have a limited credit history or do not have a traditional credit file, which causes problems when trying to use credit. So far about 61 million Americans have thin credit files while about 16 million Americans are considered credit invisible. Usually these people with little-to-no credit history are those who are still young, new to using credit, do not use credit accounts, or are cash users.
In the long run, being credit invisible can be quite costly. A subprime credit score could bring additional interest on mortgages and loans, which many Americans are most likely unable to pay out of pocket. Actually, one in three Americans have less emergency savings compared to credit card debt.
More people can shift from a poor credit score to a better one using alternative data. Leveraging this and other tools like credit repair and the best tradeline companies can help boost credit scores. At least 13 million U.S. consumers could gain access to prime or super prime offers. Utility and telco data layered with speciality finance data could help 8.4 million people become scorable through positive credit score changes. Alternative data can help create more financial opportunities for more people while supporting a more inclusive economy.
