Experian has announced a new credit scoring product today that will help close 73 million Americans with little history or no credit be fully taken into account by potential lenders. The new "Emerging Credit Score" takes into account both traditional credit scoring data, and more data "non-traditional" such as consumer purchasing and payment history, from its partner Experian , eBureau Experian
According to Experian Senior Vice President Zaydoon Munir.
"Our goal has always been twofold: to help consumers banked obtain credit and affordable financial services that they deserve and to provide our customers that serve these consumers with the best risk management tools using this revolutionary new method of scoring, lenders can now effectively -. and equitably - lend to this population and grow their Customer "
This means that millions of consumers with limited credit history can have. easier time qualifying for loans and other credit products to lenders using the new score Experian. Hopefully this will help prevent the traditional capture 22 that many people with limited credit history feel when they find they can not get credit from lenders because they have no credit history, but they can not develop a positive credit history as no credit to their creditors.
However, this also means that it is more important than ever for consumers to practice responsible financial habits across the board because this new rating system will take into account a large number of new variables that are not traditionally been assessed by lenders.