INTRODUCTION Increased competition from incumbents and new entrants, high consumer expectations, and a rapidly changing economy: These are just a few reasons lenders need more comprehensive information to manage and grow their credit-granting businesses. While traditional credit data and the scores they inform have served as time-tested tools for loan decisioning, critical blind spots remain. These missing pieces of the consumer’s financial picture can be filled by other forms of data that can give lenders a more comprehensive view of creditworthiness. Alternative credit data—data used for loan decisioning that is outside the scope of traditional credit files—can be a useful tool for lenders that want to identify qualified borrowers who may otherwise be overlooked.

Join for free to read