What are the potential for unintended consequences of using alternative credit scoring?

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 ... Jun 5, 2024 ... We find that incorporating retail data increases approval rates for individuals without a credit history, from 15% to between 31% and 47%. If these issues are not addressed, alternative data-driven credit-scoring systems can potentially amplify transparency and discrimination issues, preventing ... Feb 16, 2017 ... In the consumer financial marketplace, alternative data refers to information used to evaluate creditworthiness that is not usually part of a ... For decades, traditional credit scoring models have relied on a narrow set of financial data – primarily past loan repayments, credit card usage, ... Oct 29, 2024 ... Telecom Alternate Credit Scoring: Harnessing AI/ML for Enhanced Risk Management · 1. Identifying Potential Bad Debt Situations: It enables ... Aug 7, 2024 ... The table below gives a list of the top 10 alternative credit scoring companies and a brief description of each. Jun 10, 2020 ... These innovations reflect the continuing evolution of automated underwriting and credit score modeling, offering the potential to lower the cost ... Jan 8, 2025 ... Discover how non-traditional data sources—such as utility payments, social media insights, and behavioral patterns—can revolutionize credit ... 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 ...