Once again, FactorTrust, The Alternative Credit Bureau, is taking an industry lead in helping consumers get the credit they deserve. The company announces today from Money 20/20 the launch of a pilot program of its new consumer-focused product, CreditClimber. CreditClimber enables consumers to assist in improving their CreditClimber credit score by linking monthly bill payment data (such as mobile phone, utilities, cable/satellite) and considering a person’s effort and actions to increase his/her financial literacy in order to provide lenders with a clearer view of their creditworthiness.
 
“There are 113 million U.S. consumers with FICO credit scores under 700 today and a large portion of them have no credit history with the Big 3 bureaus. This is a massively underserved population that, when taking alternative credit data into account, deserve credit options. FactorTrust’s data demonstrates these Americans indeed are striving for a better financial standing and should be recognized asCreditClimbers,” says FactorTrust’s CEO Greg Rable.
 
During the CreditClimber pilot, invited consumers can access their credit risk score used by lenders and financial service providers in segments such as auto, consumer finance, credit card and point of sale finance. A CreditClimber score is different from a FICO score because it takes into consideration loan performance information that is not reported to the Big 3 bureaus. It also empowers consumers to have some control over improving their credit score by enabling them to opt-in and grant access to their monthly bill payment data and to take financial literacy courses. A consumer’s CreditClimber credit profile is also available that includes the following factors: total number of accounts, length of credit, revolving utilization, inquiries and missed payments. CreditClimber also provides consumers with educational opportunities regarding financial goal setting, budgeting and more.
 
“Not all credit scores are created equal. We believe that every step a person takes to demonstrate their creditworthiness should help improve their credit. For that reason, we are analyzing this information during the pilot to demonstrate that monthly bill payment data should correlate with a consumer’s score. Also, any focused effort to improve their financial intelligence should be rewarded with a higher credit score. Every time a CreditClimber does something positive, they deserve to improve their credit score,” says Rable.
 
While the percentage of unbanked consumers has decreased over the past five years, the number of underbanked consumers has remained relatively stable, according to the FDIC. The historical perception that the underbanked are all risky customers has harmed both consumers and lenders, says Rable, impeding industry and economic growth.
 
FactorTrust will pilot the CreditClimber consumer product through the end of the year. Based on consumer and lender feedback, the company plans a more aggressive national rollout in 2017.