GoKawiilThe data company has teamed up with Plaid, a fintech, to offer lenders a better window into the credit health of so-called thin-file consumers. Prices are rising again, and by some measures, consumer sentiment is as low as it’s ever been. That makes it an opportune time for some Americans to perhaps get a boost to their credit scores if they’re able to.
Credit scores are flawed. FICO has a new model that adds cashflow data. It might just offer the boost you need
Why This Matters
The introduction of FICO's new credit scoring model that incorporates cashflow data represents a significant advancement in assessing consumer creditworthiness, especially for thin-file individuals often overlooked by traditional models. This innovation could lead to fairer lending decisions and better financial opportunities for more consumers, impacting the broader financial industry. As credit scores influence access to loans and financial products, this development has the potential to improve economic inclusion and stability.
Key Takeaways
- FICO's new model includes cashflow data for better credit assessment.
- It aims to help thin-file consumers improve their credit scores.
- This change could lead to more equitable lending and financial opportunities.
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