Good or bad?:Experian Debuts New Credit Score, Helps Bring 'Underbanked' Into Lending Fold
The poorest consumers, currently living off the financial grid, may soon be pulled back onto it in an unexpected way.
Experian, a data collection and credit reporting bureau, launched its new credit score, Extended View, on Wednesday. It claims that it could bring as many as 64 million American consumers who don't have credit scores into the lending fold.
Extended View takes into account a wide variety of information not included in a traditional credit score. That includes everything from payday loan repayment history to rental payment history, and even takes a deep dive into public records -- taking into account, for example, missed child support payments.
The Extended View score will be based on a scale similar to VantageScore, which has a range of 401 to 900.
Fifteen lenders are currently considering using the score, Steven Wagner, president of Experian Consumer Information Services, told The Huffington Post. He would not identify which companies they were, but said that among them were both small and large lenders. The company said the score could be used by banks, credit unions and auto lenders, as well as phone and utility providers.
A credit score is a quick way for a lender to assess the risk of lending to a borrower. A high score can reduce borrowing costs, while a low score -- a score that indicates higher risk -- could increase them. For those who don't have a score at all, such as people new to the country or those who live on a cash-and-carry basis, it is difficult to qualify for any kind of loan.
http://www.huffingtonpost.com/2012/06/14/experian-new-credit-score-extended-view_n_1596943.html?ref=topbar
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