COSTA MESA, Calif.—Consumers are being offered a new credit tool that is reportedly “invisible” to financial institutions.
The tool has been released Experian, which said it will allow consumers to simply create their own credit reports from scratch.
The program, called Go, will involve customers linking “recurring nondebt bills”—such as cell phone payments or utility bills—to provide the foundation on which to build a credit score, Fast Company reported.
The process is aimed at converting consumers from being invisible to banks to having a credit record and an increased chance of loan approval.
Starting in 2018 and 2019, Experian and other credit-reporting agencies began allowing consumers who already have credit reports to boost their scores by adding extra information of their choosing—mostly items such as utility payments and phone bills.
“This makes Experian the first credit bureau to allow everyday cashflow data to be used as an on-ramp for building credit,” Fast Company said.
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