Alternative Credit Data: To Report or Not to Report, That Is the Question

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Advocates agree that the credit reporting system is flawed and discriminatory against low-income families. Establishing credit, however, is a form of asset building that opens up opportunities and access to mainstream credit. Some propose that full reporting of alternative data will help individuals establish good credit. The National Consumer Law Center urges that the credit reporting system itself be reformed first before deciding to add any data to a structurally deficient system. Reform needs to ensure that Low-Income Home Energy Assistance Program recipients do not lose their benefits as a result of late payments.

Copies of this article are available for individual purchase online for $15 apiece.

Watch a video interview of author Karen Harris on alternative credit reporting.

Readers may also be interested in the archive of a webinar produced by the Shriver Center on alternative credit reporting.

By Karen K. Harris and Susan Ritacca From 2010 November-December Clearinghouse Review