Consider a situation where two people are employed to perform a task. One of you is responsible for several tasks, while your colleague handles different ones. These tasks are performed well by both of you, but it becomes clear that the employee evaluations only include the tasks given to your coworker. So, even though you’ve done your job as well, or even better than your co-worker, the system is rigged so that you have nothing to show and your work is simply unable to be evaluated. 

Millions of Americans have experienced this absurd scenario when it comes traditional medicine. credit reports. Traditional credit reports show that one out of five Americans doesn’t have enough credit history to prove creditworthiness. However, Americans can move from being subprime, unscorable, or borrowers to becoming scorable, and even prime borrowers by adding alternative data. 

You could also include information such as utility bills, rent payments, or phone bills. It would benefit those people most at risk of being unemployed, like recent widows or divorcees, immigrants, Hispanics and African Americans as well as young people just starting to get credit. 

It’s time to update credit reports to make them more inclusive and accurate.

Equifax expands access to credit with alternative data