Alternative Credit Data
The Ultimate Guide to Alternative Credit Data 2021
What is Alternative Credit Data?
Alternative credit can be described as a catch-all phrase to highlight the reports on credit not normally reported in mainstream credit datasets. An alternative credit refers to any form of credit that is not included in the traditionally recognised investment grade and is better protected from the wider credit market movements. This data is useful when a business wants to establish good quality accounts which they can use to reduce credit risk and improve, retain, and grow a profitable customer base.
How is Alternative Credit Data collected?
Alternative credit data is collected using traditional methods such as the use of questionnaires by consumers, information from loan applicants, access to account information about customers. Information on credit cards, investments, and mobile phones can also make up this data. Other sources of alternative credit data include everyday bills and payments, alternative lending payments, application forms, calls, property, and asset records, online behavior, psychometric tests, and bank accounts.
What are the typical attributes of Alternative Credit Data?
Alternative credit data provides a wide range of applications, as it provides a better insight in terms of credit score determination and guidance. It also provides consumer credit behavior information beyond what the normal financial accounts can offer to give a greater understanding of consumer credit stability. Due to the wide view, it offers credit behaviors hence giving room for great improvements on credit decisions. This data also provides an avenue where predictability of credit assessments can be done. Alternative credit data is a special backup for lack of credit history on traditional credit score. By combining the alternative credit data with advanced analytic models, lending institutions can arrive at a credible credit assessment and reliable credit scores.
What is Alternative Credit Data used for?
Alternative credit data is useful in supporting the establishment of quality accounts, a factor that helps a credit organization retain and grow a profitable customer base as well as safeguarding the organization’s reputation and portfolio. Credit data traditionally shows the creditworthiness of an individual, therefore forming the basis on which the banks and other credit institutions would lend an individual to reduce the occurrence of bad debts and incurring other market risks. Alternative credit data further gives more insight into full-file and thin-file clients giving wider visibility and transparency on inquiry and spending behaviors of a customer.
How can a user assess the quality of Alternative Credit Data?
Alternate credit data can be said to be of good quality if it possesses the qualities below:
- It is used to predict outcomes and can be used together with performance data and other data components in a traditional credit report to show an expected outcome.
- It should be complementary to a traditional credit data report.
- It is regulatory compliant
- The data should also be of high-level of accuracy and should be consistent.
Who are the best Alternative Credit Data providers?
Finding the right Alternative Credit Data provider for you really depends on your unique use case and data requirements, including budget and geographical coverage. Popular Alternative Credit Data providers that you might want to buy Alternative Credit Data from are FinPricing, Equifax, Experian, TransUnion, and M Science.
Where can I buy Alternative Credit Data?
Data providers and vendors listed on Datarade sell Alternative Credit Data products and samples. Popular Alternative Credit Data products and datasets available on our platform are FinPricing Credit Spread Curve Data API - USA, Europe, Canada by FinPricing.
How can I get Alternative Credit Data?
You can get Alternative Credit Data via a range of delivery methods - the right one for you depends on your use case. For example, historical Alternative Credit Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time Alternative Credit Data APIs, feeds and streams to download the most up-to-date intelligence.