In a move to expand credit to broader segments of the population, FICO, LexisNexis and Equifax have created a pilot program that will give millions of borrowers the ability to secure financing for a home.
According to news reports, “FICO’s data scientists found that alternative data such as property records, telecommunications and utility information can reliably be used to score 15 million consumers who do not have enough credit data to generate FICO scores.
By using alternative data from LexisNexis and Equifax, FICO will give card issuers a FICO Score that complies with relevant regulations that they can use to extend credit responsibly to millions of additional people.”
The pilot for the program, which is designed to assist “risky borrowers” is expected to be completed in the coming months and could potentially open up the housing market to millions who otherwise wouldn’t be able to qualify for a home loan.
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