Federal Policy Brief: Alternative Data Reporting Helps Families Build Credit & Wealth

Access to credit is a cornerstone of financial security and an important asset-building tool. Being able to borrow money under reasonable terms supports long-term household savings and facilitates purchases that contribute to wealth building. In that sense, access to credit is, in itself, an asset. But millions of Americans are “credit invisible,” meaning they have no or low credit scores, preventing them from accessing affordable credit products.

This Federal Policy Brief explores the reasons why alternative data is critical in helping families build assets, as well as the options Congress and CFPB have for helping "credit invisible" families access affordable financial products.

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