Banks could grant cards, loans to people previously unable to get a credit score
By ANNAMARIA ANDRIOTIS
Millions of Americans unable to obtain credit cards, mortgages and auto loans from banks will receive a boost with the launch of a new credit score aimed at consumers regarded as too risky by lenders.
The new metric, set to be announced as soon as this week, is being developed by Fair Isaac Corp., creator of the most widely used consumer-credit scores, and is being tested in a pilot phase with credit-card issuers. Fair Isaac said it hopes to make as many as 53 million people who don’t have credit scores more acceptable to lenders.
People without scores in most cases don’t use debt either by choice or because a negative credit event, such as a bankruptcy, foreclosure or a collection account, has shut them out of mainstream borrowing.
Read The Full FICO Creates New Credit Metric for Risky Consumers on the Wall Street Journal Here.