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.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lending