4 min read · Personal Loan
Alternative Data’s Impact on Loan Approvals: How Non-Traditional Measures Are Changing the Rules
The fields of loan approvals and credit rating have been quietly revolutionizing themselves in recent years. Conventional indicators like credit card usage, loan repayment history, and outstanding dues are the constant foundation of traditional credit scoring models like FICO and VantageScore. However, the evaluation of a borrower’s creditworthiness by lenders is changing due to the increasing use of alternative data, which are non-traditional indicators that go beyond credit scores.