Leveling the Playing Field of Credit Scoring
When we think of responsibilities as an adult, we typically think about some of the ages and stages associated with buying a car and a home. Usually, people will need credit to make these milestones in life happen. Unfortunately, there are tens of millions of Americans that do not get afforded the possibility of credit, and they typically fall into 2 groups. The first group is having a thin credit file - this means that they have only a few things in their credit report. The other group is known as credit invisible - having nothing to show on their would-be credit report. All in all, these 2 groups comprise over 92 million Americans.
Equifax is working on rolling out alternative data methods, counting data that wouldn’t otherwise be tracked by traditional methods of credit reporting. This alternative method is expected to be able to score 90% of the people that were previously unscorable.
Learn more about how the credit game has been shaping up to be a more equitable solution for all in the visual deep dive below:
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