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Experian launches new credit score system for consumers with little or no credit history
Posted by Joe on March 11th, 2008
Experian announced a new credit scoring product today that will help the nearly 73 million Americans with little or no credit history be more fully considered by potential lenders. The new "Emerging Credit Score" takes into account both Experian's traditional credit scoring data as well as more "non-traditional" data, such as consumer purchase and payment history, sourced from Experian's partner, eBureau.
According to Experian Senior Vice President Zaydoon Munir:
"Our goal has always been twofold: to help underbanked consumers get the credit and affordable financial services they deserve and to provide our clients that serve these consumers with the best risk-management tools. Utilizing this groundbreaking new scoring method, lenders can now effectively — and equitably — lend to this population and grow their customer base."
This means that the many millions of consumers with limited credit history may have an easier time qualifying for loans and other credit products from lenders that utilize the new Experian score. Hopefully this will help prevent the traditional catch 22 that many folks with limited credit history feel when they find that they can't get credit from lenders because they have a no credit history but they can't develop a positive credit history because no creditors will extend them credit.
However, this also means that it is more important than ever for consumers to practice responsible financial habits across the board because this new scoring system will take into account many new variables that have not traditionally been evaluated by lenders.
- What is the FICO number that is considered PRIME?
- Reader Question: Which credit score do lenders use?
- New "FICO 08" score debuts
- Reader Question: Will shopping for a mortgage hurt my credit score?
- Equifax offers lenders access to new FICO score
4 Responses to “Experian launches new credit score system for consumers with little or no credit history”
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March 12th, 2008 at 4:10 pm
[...] Brent Tucker's Credit and Debt Blog just wrote an article aboutHere's a preview of it: [...]
March 12th, 2008 at 5:05 pm
[...] Read the rest of this great post here [...]
March 13th, 2008 at 5:47 pm
[...] score system for consumers with … Posted in March 11th, 2008 by in Uncategorized Experian launches new credit score system for consumers with … Experian announced a new credit scoring product today that will help the nearly 73 millionAmericans with little or no credit history be more fully considered by potential lenders. The new “Emerging Credit Score†takes into account both … [...]
May 16th, 2008 at 12:39 pm
I do have a comment concerning Experian. I believe their company is the most biased of the three. I also do not believe that their scoring system represents the true credit worthiness of the clients. I pay all my accounts ontime and keep everything in order but because some of my accounts are close to the limits, my score is low. It should not matter to the credit reporting agencies how close to the limits I am but just the fact that all accounts are paid and on time. I intend to contact my congressman and whomever else necessary to attempt to get some changes made in this area. I realize the banks and other financial institutions are behind a lot of this so they can charge higher interest rates but why do we have to suffer for their greed.