What are some potential risks associated with alternative credit scoring?

Jul 9, 2024 ... ... can now pledge mortgage collateral using VantageScore credit scores as an alternative to the Classic FICO credit score model. Mar 15, 2021 ... These data could enable credit scoring for more than 50 million currently unscoreable consumers and raise credit scores for those with thin files. Feb 18, 2025 ... Alternative credit scoring is changing the way lenders assess risk. By using simple, clear, and modern methods, this approach makes it easier to ... Sep 23, 2021 ... Abstract. This paper covers a scoping review to establish the breadth of alternative credit scoring literature. The field is nascent and gaining ... using alternative data to evaluate creditworthiness, can help you reduce unscorable consumers by up to 60% — and approve over 20% more applicants ... Jun 10, 2020 ... These innovations reflect the continuing evolution of automated underwriting and credit score modeling, offering the potential to lower the cost ... Sep 20, 2022 ... Less than half of all U.S. adults have access to prime credit because of their credit score. But new LSU and Harvard University research ... Feb 14, 2024 ... In this instance, alternative credit data may be integrated directly into a primary credit score or held out in a secondary score, used to ... Feb 21, 2017 ... Harder to educate and explain: The more factors that are integrated into a consumer's credit score or into decisions in the credit process, or ... Moving from the current Classic FICO credit score model to require lenders to use two credit scores generated by the FICO® Score 10 T and the VantageScore® 4.0 ...