Credit ratings are increasingly demanding more information from consumers who escape their review, making it difficult for them to get financing. These "credit invisible" consumers are either applying for money now, or may seek loans in the near future.
The broadening of data collection from consumers is crucial and thanks to this very informative report in today's New York Times, consumers can see it coming: "While the growing use of transaction data could be a boon to many borrowers, checking and debit accounts contain all sorts of revelatory information, and access to it must remain voluntary, advocates said. Lenders may be looking largely at the broad strokes of your cash flow now, but will they eventually glimpse at where you shop and what types of doctors you visit?"
“'Credit invisibility is a problem, but some of the solutions or cures can be worse than the disease,'” said Chi Chi Wu, a staff attorney at the National Consumer Law Center. 'It’s a high-wire act to make sure this helps more than it hurts.'”
Please read the disclaimer. This blog article ©2021 Dennis J. Wall. No claim to quoted material from New York Times reporting. All rights reserved.
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