Alternative data describes individuals’ financial history that’s unincluded on credit reports. It includes bank transaction data, rental payments, and telcom and utility bill information, among other forms of financial history, and these forms of consumer-permissioned data can drastically boost credit stability. Currently, 20% of American adults lack the alternative data they need to maintain a healthy credit score. Other numbers that reflect waning American credit include 63 million Americans being unbanked or underbanked, 92 million Americans having little-to-no credit history, 67 million adults having a “thin” credit file (less than four accounts), and 25 million being considered credit invisible.
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