According to a recent report from the Consumer Financial Protection Bureau, “Data Point: Credit Invisibles,” young adults have a high incidence of being “credit invisible,” meaning their credit histories render them “unscorable” based on the traditional credit scoring methods.
A recent study by ID Analytics explores the rates at which millennials are seeking and being denied credit, and highlights the benefits of alternative credit data, given that traditional scoring does not accurately capture this group’s credit worthiness and risk. The study also reveals that when it comes to repayment, millennials outperform their counterparts within the same credit score range, but they are still denied credit at a much higher rate than other generations.
Are your credit policies designed to accommodate millennials, or are they creating a barrier to access for this consumer group?
Click here to read ID Analytics’ new study, Millennials: High Risk or Untapped Opportunity?
