No more FICO scores on Hinge... even 800s. JPM Chase, Wells Fargo, and other banks are taking the “history” out of credit history. When reviewing credit card applications, banks will consider deposit account info for people with no credit, according to WSJ's #PFWTM — and share that info with each other. Think: $$$ in checking and savings accounts, and overdraft history. It's part of a gov-backed initiative to extend credit to underserved people. The pilot, aimed at financially responsible people without credit scores, could launch this year.
Give the people credit... 53M adults in the US don’t have credit scores — many only pay with cash/debit, or are new to the US. If this program launches, Chase could check your Wells Fargo checkings when reviewing your Chase card app. That means millions more Americans could get access to credit — and it could be a boon for banks and credit card companies.
Credit = opportunity... Good credit can help people take out cheaper loans like mortgages. Homeownership has been one of the greatest contributors to wealth creation for families. But mortgages are hard to get without a credit score. In 2015, Black and Hispanic adults in the US were more likely than white or Asian adults to lack credit scores — and they're still more likely to be denied mortgages. Increasing credit access to historically disadvantaged communities is key to narrowing the racial wealth gap.