- Posted by Laurie Anderson
- On July 24, 2017
- consumer scores, credit history, credit scores, FactorTrust, underbanked
84 Percent of US Adults Say If They Make Payments for a Loan – Small or Large – It Should Be Included in Their Credit Score
ATLANTA—Most U.S. adults do not understand what is and what is not included in their credit history, and therefore impacting their credit scores.
Out of 2,279 U.S. adults surveyed, 71 percent assume that major credit bureaus are including all consumer credit history, including non-traditional payments like short-term loans, online, rent-to-own, and more. This survey, conducted by Radius Global Market Research in June 2017 and commissioned by FactorTrust®, showcases the disconnect between consumers and their own credit data.
“Consumers and lenders are facing realities when it comes to credit histories generated by the Big 3 bureaus,” said FactorTrust CEO Greg Rable. “The true nature of their payment habits is not accurately being reflected in their credit profiles, because the alternative loans they are taking out and repaying on time are not included. It’s no surprise there are so many misperceptions around what constitutes a consumer’s credit profile and why lenders are seeking new and progressive methods to develop better ways to learn about the consumers they serve, or could be serving.”
The omission of certain types of alternative data, like short-term loans and rent-to-own payments, means that consumers who successfully repay these non-traditional loans do not receive the credit they deserve. But, 72 percent of U.S. adults believe lenders would be more likely to consider a consumer for a loan with information about all of their loans, including alternative credit data. In addition, 68 percent of U.S. adults say their credit history would improve if it incorporated all of their payments including non-traditional loans (short-term, personal, online, rent-to-own).
These same participants also have misunderstandings about their credit data and the lack of alternative data included in credit history and scores. Thirty-three percent of U.S. adults believe that non-traditional payments (online loan, housing, rental) are included in their credit score.
An Infographic found here offers highlights of the survey conducted by Radius Global Market and commissioned by FactorTrust.
The survey was conducted online within the United States by Radius Global Market Research on behalf of FactorTrust June 26-28, 2017, among 2,279 adults 18+ in the United States. The results were weighted to the U.S, census for age, gender, region and income. For further information, please contact Laurie Anderson at FactorTrust at 678.488.9740.
FactorTrust, The Alternative Credit Bureau™, is relentlessly dedicated to proven analytics and clean credit information that provide lenders and financial service providers opportunities to grow more revenue, meet compliance regulations and serve more consumers with more credit options. At the core of FactorTrust is alternative credit data analytics and risk scoring solutions not available from the Big 3 bureaus. FactorTrust alternative credit data and analytics accurately predicts risk and the ability to repay near and non-prime consumer loans in real-time. The company’s solutions enable financial service companies an opportunity to uncover creditworthy prospects that are not surfacing via traditional credit sources. Headquartered in Atlanta, the experienced FactorTrust team has delivered unique data and valuable insight to U.S. lenders for more than 10 years. For more information on the quarterly FactorTrust Underbanked Index or the company itself, visit www.factortrust.com. @FactorTrust
About Radius Global Market Research
Radius Global Market Research (www.radius-global.com) is one of the largest independent market research companies. For more than 50 years, the business has partnered with global marketers to develop insight-based strategies that drive brand performance. A superior level of senior team involvement is the hallmark of Radius GMR’s approach. Radius GMR is based in New York. Global operations include London-based Radius Europe, Radius MEA in Dubai, and Radius Asia in Beijing.
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