PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

New Credit Report Digs Deeper Into Payment History

By Mercator Advisory Group
January 9, 2012
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Financial Institutions Bank on Change to Stay Competitive - PaymentsJournal

Interior Of Coffee Shop With Customers Using Digital Devices

The ranks of credit scoring tools that tap alternative consumer data is getting longer, with the introduction of CoreScore from Corelogic Credco. The report includes bill and rental payment data in addition to traditional credit tradelines. While the data and score promise to be able to handle thinner consumer files in addition to providing a broader range of behavioral data, concerns are being expressed that bill payments may not provide an accurate picture of the payment/non-payment context.

Attorney Chi Chi Wu with the National Consumer Law Center says the report includes everything from rental applications and evictions, pay day loans, auto title loans, rent-to-own transactions, and even payments to the electric company.

It’s all intended to give a lender a better idea of who is asking for money and the likelihood of it being paid back. So where do they get the information?

“From the public records system,” said John Ulzheimer from SmartCredit.com. “And traditionally credit reports only hold three types of public records- bankruptcy, tax liens and judgments.”

While the data should facilitate broader underwriting, bringing in new data also has potential risks.

But Wu sees it a little differently. She’s concerned people who had legitimate reasons for not paying certain bills will now be penalized.

“If there are mice running around, if you don’t have any hot water, you’re allowed to not pay your rent under some jurisdictions,” said Wu. “Is the new credit report going to reflect that?”

Mercator’s research confirms greater interest on the part of credit card issuers in alternative consumer data and scoring, with a goal of making better underwriting decisions and identifying the best risk consumers among those with thin files or damaged credit histories.

Click here for more: http://abclocal.go.com/kabc/story?section=news/consumer&id=8493690

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025
    payments hub, digital banking

    All in One: How a Payments Hub Eliminates the Pain Points

    June 5, 2025
    Vertical SaaS

    From Underdogs to Industry Leaders: How Vertical SaaS Powers Mid-Sized Firms

    June 4, 2025
    credit card surcharging

    A Perfectly Understandable Bad Idea: Why Merchants Should Reconsider Surcharging

    June 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result