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Alternative data, like ash-flow evaluations, win support as path to assess creditworthiness as a change from relying on Equifax and Experian. An estimated 45 million to 60 million consumers lack the credit history needed to generate reliable credit scores under the current system.
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Alternative data “may help firms evaluate the creditworthiness of consumers who currently may not obtain credit in the mainstream credit system,” the regulators said in a written statement. “To the extent firms are using or contemplating using alternative data, the agencies encourage responsible use of such data,” the regulators added.
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