What is "Alternative" Credit Data?

by ‎08-30-2012 02:50 PM - edited ‎09-05-2012 10:22 AM

Guest post from the FICO Banking Analytics Blog. 

 

When you stop to think about it, the term “alternative credit data” is a catch-all phrase to describe data that is not currently reported on mainstream credit reports. But what, in reality, is alternative about it?

 

For millions of people, it may not be alternative data but the only credit record they have. For these consumers, it would seem it is primary data. Especially if that data can help them qualify for their first mainstream credit or loan. For everyone else, such data might be considered supplemental. It can be matched with an applicant’s traditional credit bureau file to provide a richer credit profile and lead to better lending decisions.

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