No Credit Score?

Written by Di Princell

March 12, 2021

Nothing great was ever achieved without enthusiasm.
~ Anonymous

The younger generations are fearful of going into debt unlike mama and papa so a majority stick with their debit cards when purchasing goods and services. In the short run, paying with a known quantity of funds contributes to a realistic budget and reduces financial stress, but it doesn’t build a reliable credit score. No information = No credit scores = No loans. Unfortunately, this formula, during this bleak economic crisis spells trouble for those without credit scores needing loans. Definitely a Yikes moment!

Credit scores are intended to reflect consumers’ responsiveness to their fiscal obligations: do they pay their auto loans, credit cards, mortgages, rent, finance contracts on time or at all? Plain and simple – – can these consumers be trusted to pay back the money they borrow? If they demonstrate an ability to pay, consumers will be offered lower interest rates and better deals. Unfortunately, the people that need loans the most usually get the short end of the stick due to their poor credit record or lack of and are often victims of the ridiculously high interest lenders

Fortunately, there is help on the way in a new lending process developed by RIBBIT that incorporates consumer bank transaction histories as a precise measurement tool for evaluating risk. A current survey analyzed by Bankrate found that sixty-three percent of millennials don’t have credit cards while a paltry 23% have a single card. However, their debit card transactions are displayed in their bank accounts offering a fresh and active look at a consumer’s existing buying patterns. Utilizing artificial intelligence, the RIBBIT data scientists analyze the collected bank data, combining it with massive amounts of personal attributes to predict a consumer’s ability to pay. This groundbreaking scientific formula will offer lending insights never imagined, changing the way lenders evaluate loans, and opening doors to new-found borrowing opportunities for consumers.

RIBBIT’s patent pending bank account analytics streamlines affordability decisioning and increases approval rates while lowering the financial risk for lenders. Steven Thompson, RIBBIT’s Chief Data Scientist explains, “Our RevealedAffordability™ technology provides insights into how the customer uses their bank account and to what capacity they can afford a financial product. How much the customer spends, how repetitive, and where they spend in their cash flow cycle provide a lot of clarity about their future behavior.”

Bank intelligence improves loan and payment performance without having to rely solely on past credit history. This creative evaluation system surpasses traditional credit solutions no matter how customers wish to engage and most importantly enhances our sedentary, complacent credit system that is long overdue for improvements.

Stay tuned . . .

Related Articles

Remote Flexibility, the New Normal

Remote Flexibility, the New Normal

The word remote is such a lonely word, bringing up images of an isolated cabin in the woods, hungry wolves prowling about, and potentially a shortage of food and supplies. Today’s remote office/branch office (ROBO) is often the polar opposite of the Hansel and Gretel version. ROBO is usually set up in the employee’s house often located in a separate town, state, or country from the company’s main office.

Challenges Propel Improvement

Challenges Propel Improvement

Never be afraid to fail. Failure is only a stepping stone to improvement ~ Tony Jaa

I remember my young daughter’s disheartening basketball coach yelling at the team “don’t shoot the ball unless you are going to make it.” Naturally, the team was afraid to shoot the ball so they never scored enough points to win. An enlightened coach would have said “shoot the ball until you make it.” Giving the girls permission to miss the basket without fear of blame would have released their potential. This same philosophy in the workplace is liberating: push yourself, learn from mistakes, and use your knowledge to improve. Slam dunk!

Wisdom for the 2022 Workplace

Wisdom for the 2022 Workplace

It’s great to be great, but it’s greater to be human ~ Will Rogers

One of my father and husband’s favorite TV characters was Andy Rooney, who appeared at the end of every 60 Minutes episode with a short critique on the condition of the world. Andy was the dessert at the end of the informative and serious news program, culminating with a rise of his bushy eyebrows, a twinkle in his eyes, and his witty, often acerbic insights about the way things were. And was often said, he could say so much with just a few words.