Credit Building, Repair, Counseling

It is tough to build wealth with no or low credit. Individuals caught in this situation face challenges that those with access to affordable credit do not encounter, including higher rates on car loans, mortgages and small business loans; greater difficulty finding employment and rental housing; and difficulty weathering periods of financial hardship. Research has found that alternative data increases credit access for vulnerable groups. In 2006, PERC analyzed eight million credit files, focusing on thin-file consumers who were deemed “unscoreable” due to lack of information in their credit files. The data showed that consumers who are lower-income and people of color are more likely to be thin-file borrowers. These populations are also the most helped by adding alternative data into their credit file.

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