Credit Scores

FactorTrust rolls out credit monitoring solution

ATLANTA - 

Your customers now have another option to watch for activity associated with their credit file.

On Tuesday, Used Car Week sponsor FactorTrust launched what’s being dubbed FactorTrust Credit Monitoring, a service that can observe activity within the FactorTrust credit file.

The company explained this new service allows for monitoring of alternative credit activity and is intended to be a valuable addition to existing consumer credit services focused on traditional credit activity.

FactorTrust insisted the new service fills a void in the market by monitoring alternative credit activity that is not represented in the traditional credit bureaus. In addition to monitoring activity for consumers with existing FactorTrust credit files, it is able to identify new consumers as they’re added to FactorTrust’s credit file. 

For both new and existing consumers, credit activity can be identified, and those consumers may be alerted to that fact to ensure it’s not due to fraudulent activity.

“The fact that an alternative finance loan resulting from fraudulent activity would not previously show up in traditional credit monitoring subscription services is deeply concerning,” FactorTrust vice president of strategic initiatives Megan Strub said.

“This new service was created to serve this need for providers, and in turn offers consumers with more complete identity protection,” Strub continued.

FactorTrust’s Credit Monitoring can keep track of the FactorTrust credit file for certain events and changes in credit data to identify potential identity theft as well as changes to an individual consumer’s credit file, which could impact their creditworthiness. 

These alerts can be generated on a daily basis (batch) or in real-time. The alert delivery service is available to the third parties so they can notify consumers enrolled in their consumer credit services.

“Our credit monitoring of consumer data resolves the issue of incomplete information from credit bureaus that only monitor traditional data,” FactorTrust chief executive officer Greg Rable said.

“The value in FactorTrust’s credit monitoring is that it expands the universe of protection to include real-time loans from alternative financial service providers, enabling a larger safety net and allowing consumers to take immediate action to resolve potential issues,” Rable went on to say.

Key House member looking for wide-sweeping credit bureau changes

WASHINGTON, D.C. - 

The Equifax data breach is continuing to impact Experian and TransUnion, too.

First, New York’s attorney general asked for formal meetings as the Empire State intensified its financial services regulations. Now this week, Chief Deputy Whip Patrick McHenry, who also is vice chairman of the House Financial Services Committee, introduced a bill to broaden federal oversight of the credit bureaus.

McHenry, a North Carolina Republican, is championing H.R. 4028, the Promoting Responsible Oversight of Transactions and Examinations of Credit Technology Act of 2017, or the PROTECT Act. 

The lawmaker explained this measure would amend the Fair Credit Reporting Act to allow national security freezes for the files and credit records of protected consumers. The act also would create a nationwide framework for credit freezes.

Additionally, McHenry’s office mentioned the measure would establish supervision and examination of large consumer reporting agencies under the Federal Financial Institutions Examination Council Act.  Furthermore, the legislation would prohibit the largest credit reporting agencies from using Americans’ Social Security Numbers as a basis for identification by 2020.

“The Equifax data breach has harmed my constituents in western North Carolina and Americans across the country,” McHenry said. “It exposed a major shortcoming in our nation’s cybersecurity laws and Congress must act. The bill I’ve introduced today takes an important first step in providing meaningful reforms to help Americans who have been impacted by this breach. It is focused on prevention, protection and prohibition.

“It prevents future harm to all Americans by requiring the largest credit reporting agencies to be subjected to the same standards and supervision as the rest of the financial industry," McHenry continued. "It protects Americans by creating a national credit freeze that actually works. Finally, it prohibits the largest credit reporting agencies from continuing to rely upon the most sensitive of Americans’ personal information: our Social Security Numbers.”

 

 

 

Equifax breach roundup: CUNA lawsuit and FTC workshop

WASHINGTON, D.C. - 

This past Friday, both the Credit Union National Association (CUNA) and the Federal Trade Commission made moves associated with the Equifax security breach.

CUNA announced that the association will file a lawsuit against Equifax to protect credit unions and their members from harm as a result of the incident that Equifax reported to have happened on July 29 and disclosed on Sept. 7.

“Equifax needs to be held accountable for this massive data breach that gave hackers access to the personally identifiable information of 143 million Americans and the credit card information of 209,000 people," said Jim Nussle, president and chief executive officer of CUNA.

“Equifax’s disregard for protecting this highly sensitive data means credit unions are left bearing the brunt for damages in replacing members’ cards payment cards, covering fraudulent purchases and taking protective measures to reduce risk of identity theft and false loans,” Nussle continued.

CUNA is holding a members-only call at 4 p.m. ET on Tuesday to discuss credit unions' legal rights, including potential participation in class action lawsuits in the wake of the Equifax breach.

Meanwhile, the FTC will host a workshop on Dec. 12 to examine questions about the injury consumers suffer when information about them is misused.

As the nation’s primary federal privacy and data security enforcement agency, FTC said they have brought more than 500 privacy and data security-related cases, which have focused on deceptive and unfair business practices that cause or are likely to cause consumer injury.

The workshop will address questions such as how to best characterize these injuries, how to accurately measure such injuries and their prevalence, and what factors businesses and consumers consider when evaluating the tradeoffs involved in collecting, using or providing information while also potentially increasing their exposure to injuries.

“Information flows of all kinds are vital to our economy, but the increased collection and use of consumers' information carries some risk for consumers when that information is misused,” acting FTC chairman Maureen Ohlhausen said. “This workshop is aimed at helping us to better identify and measure the consumer injuries that may result from the misuse of information about consumers.”

To help assist the agency’s analysis of this topic, the FTC is seeking comment on a range of issues including:

  •  What are the qualitatively different types of injuries from privacy and data security incidents?
  • What frameworks might we use to assess these different injuries? How do we quantify injuries?
  • How do businesses evaluate the benefits, costs and risks of collecting and using consumer information in light of potential injuries? How do consumers evaluate the benefits, costs, and risks of sharing information in light of potential injuries?

Individuals can find a full list of questions and information about how to submit comments in the detailed public notice about the workshop by going to this website. The deadline for submitting comments is Oct. 27.

The workshop, which is free and open to the public, will be at the Constitution Center, 400 7th St., SW, Washington, D.C. It will be webcast live on the FTC’s website.

Registration information, an agenda, directions to the Constitution Center building and a list of speakers will be available in the near future on the event webpage.

Credit Bureau Connection partners with Clarity Services to enhance consumer history analysis

CLEARWATER, Fla. - 

Credit Bureau Connection (CBC) and Clarity Services have partnered to provide dealers and finance companies what the service providers say is a first-of-its-kind, comprehensive view of a consumer’s credit history.

The companies explained exclusive subprime credit data combined with existing traditional credit bureau information are being used to enhance credit reports and compliance solutions for Credit Bureau Connection’s customers. Clarity insisted its non-traditional credit data provides a unique insight into consumer credit behavior that is not available from the traditional credit bureaus.

“Lenders and buy-here, pay-here dealers who exclusively use traditional bureau scores are missing a wealth of information that could have a huge impact on underwriting or lending decisions,” the companies said. “This partnership gives lenders greater access to information they need to mitigate their risks and better understand their applicants.”

By incorporating Clarity’s data, dealers will be able to more accurately price and structure deals with profitable contract terms while managing default risk.

“I’m excited about our partnership with Clarity Services,” said Mike Green, president and chief executive officer of CBC. “This partnership goes beyond just providing credit reports. It will provide additional insight into a consumer’s file that will change the industry as we know it.

“The industry needs this now more than it ever has,” Green continued. “The additional benefit of non-traditional credit data bundled with CBC’s robust credit report and compliance suite, will elevate subprime dealers to new heights.”

With an increasing number of consumers having subprime credit scores, CBC and Clarity sense that more finance companies and partners within the credit industry are accepting the necessity of more comprehensive information to determine an applicant’s intent to pay.

For California-based CBC and its partners, Clarity’s data provides a new level of confidence in financing.

“We are excited about the partnership with Credit Bureau Connection, an industry leader in credit reports and compliance solutions,” said David Elmore, vice president of auto finance and strategic accounts at Clarity Services.

“The partnership between Clarity Services and CBC provides a unique opportunity to improve underwriting and lending efficiency for thousands of subprime auto dealers,” Elmore continued. “Leveraging Clarity data will provide CBC’s customers with the most comprehensive and robust view of the subprime consumer in the industry.”

New York governor and AG take aggressive actions over Equifax breach

NEW YORK - 

Two of the highest ranking officials in New York are using the Equifax security breach to intensify actions within the Empire State, bringing Experian and TransUnion into the matter, too.

On Tuesday, Gov. Andrew Cuomo directed the New York Department of Financial Services to issue new regulation making credit reporting agencies register with New York for the first time and comply with what the state has called a first-in-the-nation cybersecurity standard.

Then on Wednesday, New York Attorney General Eric Schneiderman announced that his office has sent formal inquiries regarding data security to Experian and TransUnion following the Equifax data breach that potentially exposed the personal information of 143 million consumers.

“A person’s credit history affects virtually every part of their lives, and we will not sit idle by while New Yorkers remain unprotected from cyberattacks due to lax security,” Cuomo said.

“The Equifax breach has left millions of New Yorkers vulnerable to identity theft and major financial issues,” Schneiderman said. “Credit reporting agencies have a fundamental responsibility to protect the personal information they’re entrusted with.

“As we continue our investigation into the Equifax breach, it’s vital to ensure that consumer data at the other major credit reporting agencies is safe,” Schneiderman added.

Under the proposed regulation, all consumer credit reporting agencies that operate in New York must register annually with DFS beginning on or before Feb. 1 and by Feb. 1 of each successive year for the calendar year thereafter. The registration form must include an agency’s officers or directors who will be responsible for compliance with the financial services, banking, and insurance laws and regulations.

The annual reporting obligation contained within the proposal also provides the DFS Superintendent with the authority to deny and potentially revoke a consumer credit reporting agency's authorization to do business with New York’s regulated financial institutions and consumers if the agency is found to be out of compliance with certain prohibited practices, including engaging in unfair, deceptive or predatory practices.

“The data breach at Equifax demonstrates the necessity of strong state regulation like New York’s first-in-the-nation cybersecurity actions,” Department of Financial Services superintendent Maria Vullo said. “This is one necessary action of several that DFS will take to protect New York's markets, consumers and sensitive information from criminals.”

The DFS Superintendent may refuse to renew a consumer credit reporting agency's registration if the superintendent finds that the applicant or any member, principal, officer or director of the applicant, is not trustworthy and competent to act as or in connection with a consumer credit reporting agency, or that the agency has given cause for revocation or suspension of such registration, or has failed to comply with any minimum standard.

The proposed regulation also subjects consumer reporting agencies to examinations by DFS as often as the superintendent determines is necessary, and prohibits agencies from the following:

—Directly or indirectly employing any scheme, device or artifice to defraud or mislead a consumer.

—Engaging in any unfair, deceptive or predatory act or practice toward any consumer or misrepresent or omit any material information in connection with the assembly, evaluation, or maintenance of a credit report for a consumer located in New York State.

—Engaging in any unfair, deceptive, or abusive act or practice in violation of section 1036 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

—Including inaccurate information in any consumer report relating to a consumer located in New York State.

—Refusing to communicate with an authorized representative of a consumer located in New York State who provides a written authorization signed by the consumer, provided that the consumer credit reporting agency may adopt procedures reasonably related to verifying that the representative is in fact authorized to act on behalf of the consumer.

—Making any false statement or make any omission of a material fact in connection with any information or reports filed with a governmental agency or in connection with any investigation conducted by the superintendent or another governmental agency.

In addition, every credit reporting agency must comply with the department’s cybersecurity regulation, on phased in schedule of compliance, starting April 4.

DFS’ cybersecurity regulation requires banks, insurance companies and other financial services institutions regulated by DFS to have a cybersecurity program designed to protect consumers' private data; a written policy or policies that are approved by the board or a senior officer; a chief information security officer to help protect data and systems; and controls and plans in place to help ensure the safety and soundness of New York's financial services industry.

“Oversight of credit reporting agencies will help ensure that personal information is less vulnerable to cyberattacks and other nefarious acts in this rapidly changing digital world,” Cuomo said. “The Equifax breach was a wakeup call and with this action New York is raising the bar for consumer protections that we hope will be replicated across the nation.”

And Schneiderman wants to know what Experian and TransUnion are doing, as well.

In letters sent to the CEOs of the two companies, the attorney general’s office asks them to detail:

—The security measures that were in place before they learned of the Equifax breach

—Steps the companies have taken since learning of the breach to ensure that they haven’t already suffered similar intrusions and won’t experience breaches moving forward

—How they will further assist consumers in protecting their personal information

Schneiderman is seeking the answers to these questions by Sept. 21 and a meeting with top executives at Experian and TransUnion by Sept. 28.

Early fallout of Equifax breach that might impact 143 million consumers

CARY, N.C. - 

From lawmakers to law firms, Equifax now is in the middle of a financial hurricane as the credit bureau announced late on Thursday that a cybersecurity incident potentially impacted approximately 143 million U.S. consumers.

In its announcement, Equifax said criminals exploited a U.S. website application vulnerability to gain access to certain files. Based on the company’s investigation, the unauthorized access occurred from mid-May through July. 

The company added that has found no evidence of unauthorized activity on Equifax's core consumer or commercial credit reporting databases.

Equifax said the information accessed primarily includes names, Social Security numbers, birth dates, addresses and, in some instances, driver's license numbers.  In addition, credit card numbers for approximately 209,000 U.S. consumers, and certain dispute documents with personal identifying information for approximately 182,000 U.S. consumers, were accessed, according to the company’s announcement.

As part of its investigation of this application vulnerability, Equifax also identified unauthorized access to limited personal information for certain U.K. and Canadian residents. Equifax said it will work with U.K. and Canadian regulators to determine the appropriate next steps. 

The company also noted has found no evidence that personal information of consumers in any other country has been impacted. 

Equifax indicated that it discovered the unauthorized access on July 29 of and acted “immediately to stop the intrusion.” The company said it promptly engaged a leading, independent cybersecurity firm that has been conducting a comprehensive forensic review to determine the scope of the intrusion, including the specific data impacted.

Equifax also reported the criminal access to law enforcement and continues to work with authorities.  While the company’s investigation is substantially complete, it remains ongoing and is expected to be completed in the coming weeks.   

"This is clearly a disappointing event for our company, and one that strikes at the heart of who we are and what we do. I apologize to consumers and our business customers for the concern and frustration this causes,” Equifax chairman and chief executive officer Richard Smith said.

“We pride ourselves on being a leader in managing and protecting data, and we are conducting a thorough review of our overall security operations,” Smith continued. “We also are focused on consumer protection and have developed a comprehensive portfolio of services to support all U.S. consumers, regardless of whether they were impacted by this incident.”

By lunchtime on Friday, more than a half dozen shareholder rights law firms push out announcements regarding their own investigations. Attorney John Yanchunis of ClassAction.com and Morgan & Morgan already had filed a class action lawsuit against Equifax in the Northern District of Georgia.

Part of what is intensifying plaintiff attorneys’ efforts is what San Diego-based firm Johnson Fistel highlighted. It’s what a pair of high-level Equifax executives did, according to regulatory filings.

“(These filings) show on Aug. 3, just days after the July 29 breach discovery, chief financial officer John Gamble sold shares worth $946,374 and Joseph Loughran, president of U.S. information solutions, exercised options to dispose of stock worth $584,099,” Johnson Fistel said in a news release.

On Capitol Hill, members of Congress want more answers, too. And not just from Equifax. Rep. Ted Lieu, a California Democrat, is seeking a U.S. House Judiciary Committee hearing.

“In light of recent events, I request the committee call upon representatives from the Big 3 credit reporting agencies — Experian, TransUnion and Equifax — to testify not only on the breach that occurred in May 2017, but also to identify how each company is taking proactive, defensive steps to prevent such breaches in the future,” Lieu said.

“Congress has a strong role to play in preventing such attacks on our financial and IT infrastructure, and must hold those entrusted with our most sensitive data to account,” he added.

Equifax went on to say that it has engaged a leading, independent cybersecurity firm to conduct an assessment and provide recommendations on steps that can be taken to help prevent this type of incident from happening again.

“I’ve told our entire team that our goal can’t be simply to fix the problem and move on. Confronting cybersecurity risks is a daily fight. While we’ve made significant investments in data security, we recognize we must do more. And we will," Smith said.

FactorTrust partners with Enova Decisions to bolster consumer credit availability

ATLANTA - 

This week, alternative credit data provider FactorTrust announced a partnership with predictive analytics and digital decisioning company, Enova Decisions, to integrate FactorTrust’s proprietary data into its Colossus digital decisioning platform.

Executives highlighted the integration will strengthen Enova Decisions’ platform with additional proprietary data that will result in improved automated, real-time operational decisions for its customers.

Chicago-based Enova Decisions supports numerous industries, including financial services, telecommunications and higher education. The company’s data-driven solutions can help clients in the financial services industry specifically improve their operational decisions instantly and at scale.

“FactorTrust is proud to assist industry leaders like Enova Decisions with their data needs,” FactorTrust chief executive officer Greg Rable said. “Our alternative credit data enables their clients to gather the full picture on likely consumers, thereby extending appropriate credit options to consumers that may otherwise not receive it — a shared goal of FactorTrust and Enova Decisions.”

In its 14-year history, Enova, parent company to Enova Decisions, has extended more than $19 billion in credit to nearly 5 million customers around the world, using Enova Decision’s advanced analytics and decisioning technology.

“Adding additional non-traditional data is important to our overall data integration strategy,” Enova Decisions chief analytics officer Joe DeCosmo said. “FactorTrust’s proprietary data helps fill in the gaps that traditional data can’t provide—and contributes to our analysis of consumer data in real-time through our tailored analytics, AI and decisioning technology.

“This further enables our clients to quickly transform their underwriting, offers, payments decisions and more, to deliver a better customer experience and improve business performance,” DeCosmo added.

FactorTrust again among Inc. 5000

In other company news, FactorTrust was named one of the fastest-growing private companies in the U.S. by Inc. 5000. For the second consecutive year, not only was the company the only private, alternative credit bureau to make the list, but it was also ranked the eighth fastest-growing financial services firm in Georgia.

This is the fourth year FactorTrust has been named to the list for its significant growth in revenue and company size. The list represents a unique look at the most successful companies within the American economy’s most dynamic segment— its independent small and midsized businesses. The average company on the list achieved a three-year growth of 481 percent.

“Our growing team of industry champions set us on the path to unprecedented growth in both revenue and innovation in recent years,” Rable said. “Our team’s expertise, coupled with better recognition of the impact of alternative credit data for evaluating creditworthiness of underbanked consumers, is driving FactorTrust as the leading alternative credit reporting and analytics agency.”

The Inc. 5000’s aggregate revenue is $206 billion, and the companies on the list collectively generated 619,500 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000.

“The Inc. 5000 is the most persuasive evidence I know that the American Dream is still alive,” Inc. president and editor in chief Eric Schurenberg said. “The founders and CEOs of the Inc. 5000 tell us they think determination, risk taking, and vision were the keys to their success, and I believe them.”

Ford Motor Credit leverages machine learning to enhance underwriting, reduce risk

LOS ANGELES - 

Ford Motor Credit and ZestFinance recently announced the results of a study that measured the effectiveness of machine learning to better predict risk in auto financing and potentially expand auto financing for millennials and other Americans with limited credit histories.

As a result of the study’s success, Ford Credit said it is developing plans to implement machine learning credit approval models to further enhance its consistent and prudent lending practices across the credit spectrum.

“At Ford and Ford Credit, our primary goal is to serve our customers,” Ford Credit chairman and chief executive officer Joy Falotico said. “For this study, we worked with ZestFinance to harness the capability of machine learning to analyze more data and to analyze our data differently.

“The study showed improved predictive power, which holds promise for more approvals, enhanced customer experiences and even stronger business performance, including lower credit losses,” Falotico continued.

The captive explained that Ford Credit’s proprietary models have performed well for decades. The machine learning study compared results from a Ford Credit scoring model with a machine learning model developed by ZestFinance, using its underwriting platform to do deeper analysis of applicant data.

Ford Credit and ZestFinance found that machine learning-based underwriting could reduce future credit losses significantly and potentially improve approval rates for qualified consumers, while maintaining its consistent underwriting standards.

According to the Consumer Financial Protection Bureau, 26 million American adults, or about one in 10, have no credit record, making them difficult and often impossible to underwrite using traditional methods. This includes millions of millennials who are also part of the fastest-growing segment of new car buyers.

Although these consumers may have steady jobs, officials insisted their creditworthiness is heavily based on credit history. This makes it more difficult for companies to provide financing, and they could miss an opportunity for revenue growth.

Last year, the captive pointed out that new vehicles purchased by millennials represented 29 percent of all U.S. sales, and that number is expected to grow to 40 percent by 2020.

“Machine learning-based underwriting will be a game-changer for lenders, opening entirely new revenue streams. Millennials offer the perfect example. They are typically a good credit risk and are expected to command $1.4 trillion in spending by 2020, but many lack the financial history needed to pass a traditional credit check,” ZestFinance founder and CEO Douglas Merrill said.

“Applying better math and more data to traditional underwriting illuminates the true credit risk and helps forward-looking companies like Ford Credit continue to grow their businesses while predictably managing their risk,” Merrill added.

The companies also highlighted that machine learning tools can analyze data more deeply and in more detail. They also are capable of “learning” over time, for example, by proposing changes to variables as patterns evolve or emerge, or by recognizing and incorporating macroeconomic changes into their assessments.

ZestFinance is now offering the Zest Automated Machine Learning (ZAML) Platform, which it developed specifically for credit underwriting. ZAML uses complex algorithms to analyze thousands of data points to provide a richer, more accurate understanding of all potential borrowers, delivered in an easy-to-use Web interface.

The ZAML Platform consists of three components: data collection and assimilation, machine learning modeling tools and transparency tools that enable companies to explain credit decisions.

“The work with ZestFinance exemplifies the innovation efforts at Ford Credit to support Ford Motor Company and its customers,” the captive said.

“Financial technology is key to many of these efforts, as fintech can contribute to an even more seamless and better personalized vehicle financing experience for consumers,” the company went on to say.

Lobel Financial boosts underwriting with FactorTrust data

ATLANTA - 

On Friday, FactorTrust announced the addition of Lobel Financial to its growing list of financial service companies implementing its alternative credit data into their credit decisioning process.

Lobel Financial, a finance company specializing in purchasing and servicing vehicle installment contracts from independent and franchised dealers, is using FactorTrust data in a custom scorecard to augment other in-house credit strategies.

The company selected FactorTrust to implement its alternative credit data to help them achieve more lift and better separation of good and poor credit performers.

“We looked closely at what FactorTrust could offer, and decided that its many attributes, delivered in real-time, would help us best reach our goal of establishing enhanced segmentation for the development of our new internal scorecard,” Lobel Financial president Harvey Lobel said.

Lobel Financial joined finance companies such as National Auto Lenders leveraging FactorTrust’s information.

“Using alternative credit data is a proactive choice for industry leaders like Lobel Financial, who are faced with the challenge of effectively and intelligently managing risk on the underbanked market,” FactorTrust chief executive officer Greg Rable said.

“The addition of FactorTrust’s proprietary data opens up their options in determining the best credit performers for their business. It allows a complete picture of consumers, who are often considered credit invisible, but are really just credit inaccurate due to lack of data,” Rable added.

What 71% of adults think is in their credit history

ATLANTA - 

Here is more evidence as to why customers sitting across the desk from you might be frustrated the rate attached to their installment contract isn’t as favorable as they expect. A new survey from FactorTrust indicated most U.S. adults do not understand what is and what is not included in their credit history, and therefore impacting their credit scores.

Out of 2,279 U.S. adults surveyed, the results showed 71 percent assumed that major credit bureaus are including all consumer credit history, including non-traditional payments like short-term loans, online, rent-to-own and more. This survey, conducted by Radius Global Market Research in June and commissioned by FactorTrust, showcased the disconnection between consumers and their own credit data.

“Consumers and lenders are facing realities when it comes to credit histories generated by the Big 3 bureaus,” FactorTrust chief executive offier Greg Rable said. “The true nature of their payment habits is not accurately being reflected in their credit profiles, because the alternative loans they are taking out and repaying on time are not included.

“It’s no surprise there are so many misperceptions around what constitutes a consumer’s credit profile and why lenders are seeking new and progressive methods to develop better ways to learn about the consumers they serve, or could be serving,” Rable continued.

FactorTrust asserted the omission of certain types of alternative data, like short-term loans and rent-to-own payments, means that consumers who successfully repay these non-traditional loans do not receive the credit they deserve. But, 72 percent of U.S. adults believe finance companies and other lenders would be more likely to consider a consumer for a loan with information about all of their loans, including alternative credit data.

In addition, 68 percent of U.S. adults who participated say their credit history would improve if it incorporated all of their payments including non-traditional loans (short-term, personal, online, rent-to-own).

These same participants also have misunderstandings about their credit data and the lack of alternative data included in credit history and scores. FactorTrust pointed out that 33 percent of U.S. adults believe that non-traditional payments (online loan, housing, rental) are included in their credit score.

The survey was conducted online within the United States by Radius Global Market Research on behalf of FactorTrust June 26 through 28 among 2,279 adults age 18 and older in the United States. The results were weighted to the U.S, census for age, gender, region and income.