Give Credit Where Credit Is Due
Increasing Access to Affordable Mainstream Credit Using Alternative Data
By Michael A. Turner, Alyssa Stewart Lee, Ann Schnare, Robin Varghese, and Patrick D. Walker

A recent study by the Brookings Institution examines the fact that despite the vast accomplishments of the American credit system, approximately 35 million to 54 million Americans remain outside the credit mainstream. For a variety of reasons, mainstream lenders have too little information on these consumers to evaluate risk and thereby extend credit to them.

This study offers a feasible market solution to bring those outside the mainstream credit fold within it. Mainstream lenders can use "alternative" or "nontraditional" data, including payment obligations such as rent, gas, electric, insurance, and other recurring obligations, to evaluate the risk profile of a potential borrower.

For more information about this study, including an executive summary and the full report, please click here.



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