THE RIGHT TOOLS
HOW YOUR BUSINESS CAN REACH 100 MILLION NEW CONSUMERS BY USING THE RIGHT CREDIT DECISIONING TOOLS
A good carpenter never blames his tools, but a great carpenter uses the tools that make him most efficient and effective. For a long time, offering credit has been a tool that businesses could effectively use to expand their customer base and drive profits. But offering credit has its limitations. Creditors have depended on credit bureau reports to make decisions about offering credit to their customers.
But under our noses many people have fallen through the credit cracks because they don't have enough of a credit history to be accurately represented in a credit report (if they have a report on file with any of the credit bureaus at all). There are an estimated 100 million people who fit into this category. They are the credit underserved, and until recently it was impossible to determine their credit score or generate an accurate credit report for them. With the advent of newer systems for credit scoring, times are changing.
Nowadays someone without prior credit history like credit cards, mortgages, or bank loans can still have their credit evaluated based on history of paying rent, gas/electric and even the cable TV bills. Using this "alternative" data, credit underserved consumers are now able to make purchases and the business is now able to open their doors to many more customers than they could serve before. For more on using alternative data and non-traditional credit reports visit www.MicroBilt.com.
Still not sure this is a valuable market for your business? There are two numbers you should know:
1.2 Billion
That's the number of "non-traditional financial transactions" in 2007 that went unreported by creditors. Non-traditional credit reports factor this data into credit scores and give you a much better picture of the consumer.
$1.1 Trillion
The amount of money earned by credit underserved consumers in 2006. Could your business use some of those dollars? Armed with the right tools you can take on anyone, from the guy with two credit cards, a mortgage and a small business loan on file to the credit ghosts you used to have to turn down because they didn't have enough credit history.
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