Alternative Data in Credit Scoring: What Works and What Doesn't
Summary
Alternative data like utility and rental payments can help thin-file borrowers, but lenders must carefully evaluate which sources add predictive value without bias.
From utility payments to rental history, alternative data sources promise to help lenders serve thin-file consumers. But not all alternative data is created equal. This analysis examines which data sources have proven predictive value and which may introduce unwanted bias.
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