NBC Nightly News recently aired coverage where they examined two changes that could boost credit scores for millions of US consumers.
The news agency examined last year’s announcement of FICO® Score XD, aimed at the millions of US consumers who otherwise cannot receive a FICO® Score due to insufficient or stale data in traditional credit bureau files. NBC News discussed how the new score leverages alternative data, such as utilities payments and wireless and cable bill payment history, to determine credit scores.
And starting July 1, the three major credit reporting agencies are dropping certain negative information from credit reports, including tax liens and civil judgments. NBC Nightly News shares FICO estimates that 12 million consumers will see their FICO® Scores increase – although, roughly 11 million of these consumers will see only a slight score increase of less than 20 points.
View the NBC Nightly News video: Changes to Credit Report Criteria Could Boost Scores.
To learn more about the use of alternative data in credit scoring, watch our webinar: FICO® Score Fundamentals and FICO Alternative Data Research.