Experian Finds 89 Percent of Lenders Believe Alternative Credit Data Improves Financial Access for Consumers Seeking Credit D...
17 Septiembre 2020 - 5:03AM
Business Wire
Latest State of Alternative Credit Data report
shows most consumers willing to provide additional information to
lenders for improved credit access
As part of its mission to use data to keep the credit economy
open to more consumers, Experian® today released its latest State
of Alternative Credit Data report. The study highlights consumer
and lender perceptions about leveraging alternative credit data
against the backdrop of COVID-19, revealing 80 percent of consumers
feel including items such as utility or mobile phone payment
history would have a positive impact on their credit score and
nearly 90 percent of lenders believe alternative credit data allows
them to extend credit to more consumers.
Experian’s report also found 69 percent of consumers are worried
about their finances and one in five plans to open a credit card
within the next six months. At the same time, 96 percent of lenders
believe using alternative credit data allows them to more closely
evaluate consumer creditworthiness in times of economic stress.
“There is no question COVID-19 has created a difficult economic
reality for millions of Americans. As we think about economic
recovery, all of us in the financial services industry must work
together to support consumers and maintain the integrity and
openness of the credit market,” said Greg Wright, executive vice
president and chief product officer for Experian Consumer
Information Services. “Incorporating alternative and consumer
permissioned data attributes into decisioning processes empowers
lenders to extend credit responsibly while helping consumers access
the financial services they need in the current economic
environment and beyond.”
Alternative credit data, sometimes called expanded
FCRA-regulated credit data, refers to information not traditionally
included in credit reports. Incorporating alternative credit data
into credit decisioning can help consumers with limited or no
credit histories gain access to financial services while providing
a clearer picture of a prospective borrower’s creditworthiness.
Additional State of Alternative Credit Data report findings
include:
- Three out of four consumers believe they are a better borrower
than their credit score represents
- If given a choice, most consumers would prefer alternative
credit data sources — such as utility bill payment history (84%),
cell phone payment history (83%) and rental payment history (80%) —
be evaluated in their credit history
- 80% of consumers would likely share various types of financial
information with lenders if it meant increased chances for approval
or improved interest rates on credit
- 74% of consumers believe giving lenders access to their
financial data via their bank account would be more convenient than
providing hard copy documents
Survey methodology
Experian conducted two national online surveys with both credit
providers and consumers regarding attitudes, awareness and use of
alternative credit data.
For the lender survey, 136 partial and completed responses were
collected from financial institution representatives who have the
responsibility of choosing their organization’s data services. The
financial institutions survey was fielded in April 2020.
For the consumer findings, Experian conducted a nationwide
online survey of 504 respondents who were planning to apply for
credit within the next three months, with survey invitations
balanced to the U.S. Census. The consumer survey was fielded from
May 1 to May 5, 2020.
To learn more about alternative credit data, please visit:
https://www.experian.com/consumer-information/alternative-data.
About Experian
Experian is the world’s leading global information services
company. During life’s big moments — from buying a home or a car to
sending a child to college to growing a business by connecting with
new customers — we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have 17,800 people operating across 45 countries, and every
day we’re investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global content
hub at our global news blog for the latest news and insights from
the Group.
Experian and the Experian trademarks used herein are trademarks
or registered trademarks of Experian and its affiliates. Other
product and company names mentioned herein are the property of
their respective owners.
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version on businesswire.com: https://www.businesswire.com/news/home/20200917005048/en/
Amanda Garofalo
Experian Public Relations 1 714 460 3739
amanda.garofalo@experian.com
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