41. Utility Payments as Alternative Credit Data: A Reality Check
- Author:
- Sara Burr and Virginia Carlson
- Publication Date:
- 03-2007
- Content Type:
- Working Paper
- Institution:
- The Brookings Institution
- Abstract:
- Access to credit is one of the cornerstones of wealth-building in the United States. Yet, between 35 million and 54 million persons are not participating in the credit market. Many individuals outside the credit mainstream are unable to access credit, or credit at competitive rates, because of the lack of traditional information, such as mortgage and credit card payments, available on their credit files. However, there is evidence that the inclusion of alternative data on credit-like payments, such as utility payments, in credit reporting can help bridge this information gap. The first step toward filling this gap requires utility companies to systematically report these data to the major credit bureaus.
- Topic:
- Civil Society, Demographics, Development, and Economics
- Political Geography:
- United States