Better Data, Better Credit Scores, and Better Opportunities

In July, Bloom CEO Christian Widhalm sat down with Dan Currell of the Digital Commerce Alliance to discuss credit building, credit scores, and financial inclusion on  the Commerce Code podcast . The conversation covers topics including thin file, no file, and subprime consumers in the USA, credit building products, and the accuracy of credit data.

Thin file consumers are those with limited credit history, while no file consumers lack any credit history on record. Subprime consumers fall within the lower credit score range, with categories ranging from near prime to super prime. Vantage Score aims to incorporate more data into credit scoring to make lending decisions more accurate and inclusive.

Bloom Credit focuses on making it easier for businesses to report accurate credit data to credit bureaus, particularly targeting underserved populations. Significant potential economic and social opportunities in targeting thin file, no file, and subprime consumers, which make up a substantial portion of the US population without access to mainstream credit rates.

The conversation also explores credit building products designed to help consumers improve their credit scores. These products, such as secured credit cards and personal loans, offer individuals a chance to demonstrate creditworthiness and gradually access more traditional credit products. Currell and Widhalm discuss how financial institutions and brands are increasingly recognizing the opportunity in serving this segment and promoting financial inclusion.

The inclusion of additional data, such as rental payment history, is seen as beneficial for improving credit scores and making lending decisions more accurate. The podcast highlights the potential impact of credit building products on consumers’ ability to access credit and improve their financial situations. It also touches on the evolving landscape of credit reporting, including the potential incorporation of Buy Now Pay Later (BNPL) data into credit scoring models.

Consumer education is identified as a crucial aspect of this ecosystem, as consumers need to understand how their actions affect their credit scores. Measurable progress has been made in recent years, with increased access to credit scores and educational resources, helping consumers make more informed financial decisions.

Listen on your preferred podcast platform to learn more about the importance of data accuracy, credit building, and financial inclusion in empowering individuals to improve their credit profiles and achieve greater access to credit products:

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