New research studies from Experian, the leading global information services company, found that by adding on-time alternative payment data to credit report files, millions of consumers could gain access to basic financial services such as loans and credit cards. These studies then analyzed the financial benefits for consumers by adding positive, monthly utility or rental payments to their credit reports and the subsequent effect on their overall access to credit, credit scores and risk profile.
Unlike credit cards and mortgages, on-time and regular utility payments (with very few exceptions) are not included in an individual’s credit report. One of Experian’s newest studies — and the first it has published on this topic — titled Let there be light, found that by including these tradelines, consumers could potentially benefit by having higher credit scores, lower interest rates, fuller credit histories and thicker credit files.
“Experian is committed to helping people establish credit and enhance their financial well-being,” said Genevieve Juillard, president of Experian’s Consumer Information Services. “We have seen that incorporating new data sources into credit files is a positive step for consumers, and we’re happy that the public and private sectors are recognizing this with the Credit Access and Inclusion Act.”
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