According to Experian’s report, the demand curve among consumers and lenders is shifting toward more credit scoring models that include a wide swath of data. Nearly 80 percent of lenders surveyed noted that they used a traditional FICO score plus at least one alternative data stream in underwriting decisions; while 16 percent noted they either use, or plan to use, rental payment or utility payment data in their underwriting choices.
Moreover, the report notes, lenders believe alternative data streams could help them both make better decisions risk wise, and also “expand their lending universe.”
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