A group of graduates joyfully toss their caps in celebration of their achievement. Credit/AdobeStock

Traditionally, credit scores have been the industry standard for determining a potential borrower's propensity to repay future loans. Although the historical data provided by traditional credit scores is important, it does not always tell the full story of a borrower's current financial footing or risk profile. For example, currently enrolled students and recent college graduates who are starting their careers may not have had the chance to build credit. As a result, many of these potential borrowers have thin or no credit files, putting them at a disadvantage when applying for loans.

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