Lenders are questioning the integrity and usefulness of the FICO score, with a number of smaller Silicon Valley-backed firms beginning to go beyond the traditional credit score.
Majority of online lenders speculate their new scoring systems aimed at bolstering credit will be upheld in a tougher business arena.
Social Finance Inc. discards FICO ratings in its credit decisions, with Chief Executive Mike Cagney thinking that score is not a real determiner to credit performance.
Affirm Co-founder and Chief Executive Max Levchin said their internal model holds a wide net for clients, which can be appealing to millennials and other underbanked customers overlooked by most creditors.
The material has been provided by InstaForex Company – www.instaforex.com