How Tech Is Improving Access to Credit

How Tech Is Improving Access to Credit

Traditionally speaking, credit has always been tied with financial institutions. Before, there were very limited ways on how you can access, improve or manage your credit but the advent of technology and the internet changed it for the better in the consumer’s point of view.

Here are 3 ways on how technology improves credit access.

The Introduction of Online Loans

Online loans present a way for those who have low or no credit get a chance at improving their score and get access to money that traditional institutions normally wouldn’t allow. Bad credit loans are available, and they have a faster processing time compared to bank loans.

You can visit website if you have bad credit history, fill out the form and wait for the results to come in. It’s an excellent way to re-build or start anew if you just graduated from college or have encountered financial difficulties.

AI-Enabled Systems

Lenders and financial platforms can look towards a future where AI can determine the risks and probability of a loan pushing through. Also, the technology can be used to provide an alternate scoring method in a side-by-side with human judgment.

This can help those who are struggling or ones who don’t have a score yet. Since AI can compute for worthiness in more aspects, and consumers can expect a quicker turnaround time from the moment they apply for a loan to receiving the cash.

A New FICO Score

Those who have yet to build their FICO score will find themselves in an uphill climb. Unable to get a loan, apply for a credit card or get into paying utility bills, this group will need an alternative scoring method.

Today, a credit reporting agency has built a new scoring model for first-timers and allow them to expand their credit. FICO XD2 uses a number of data sources, such as cellular, cable and utility payment histories to create scores for those who fell outside the traditional systems.