Consumers with little to no traditional credit files are often avoided by card issuers. Yet, the opportunity associated with this consumer group—estimated at well over 50 million Americans —is tremendous.
FICO® Score XD, developed in partnership with Equifax® and LexisNexis® Risk Solutions, provides a valuable extension to traditional credit scores to help determine the risk associated with individuals who lack sufficient credit history.
FICO® Score XD Uses Multiple Sources of Alternative Data
With property and public record information and traditional credit data, the score includes positive/negative account payment data from the National Consumer Telecom & Utilities Exchange, Inc. (NCTUE®), exclusively managed by Equifax.
NCTUE® data includes payment history for pay TV, utilities, telecommunications and knowing how consumers pay these “everyday bills"-which are generally not included in the traditional credit file-can be predictive of future account performance and help gauge risk.