Being a licensed barber can increase your credit score; credit-reporting company Experian wants to use alternative data to boost your credit score.
Avoid shady credit repair agencies and use one of the nation’s largest credit agencies to boost your credit scores. Experian creates a new credit score, and it will start selling it to lenders soon.
Unlike the FICO score, created by the Fair Isaac Corp, the Lift score from Experian will factor your professional license, how you handle payday loans and utility bills. If you are a licensed barber, your Lift score might be higher than your FICO score.
The usefulness of the Lift Score
Having a higher Lift score does not mean anything if lenders don’t use it to make credit decisions. Consumers have multiple credit scores. Each credit-reporting company uses numerous scoring models. However, the Fair Isaac Corporation (FICO) credit score is the most popular amongst lenders.
According to the Fair Isaac Company’s website, 90% of U.S. lenders used the FICO score to make credit decisions. Lenders, consumers, and other third-party purchase 10 billion FICO scores every year.
The U.S. economy is 70 percent of consumer spending. This era of cheap money gives prime borrowers numerous options for their financing needs. So, lenders have to attract new clients. Because data like your professional license, utility bills, and rents are factored into the Lift scoring model, it gives lenders another way to underwrite non-traditional borrowers.
The three major credit agencies already have their credit score with their scoring models–Equifax Beacon 5.0, Experian/Fair Isaac Risk Model V2SM, and TransUnion FICO Risk Score, Classic 04. The aforementioned educational credit scores are most likely what you get through a site like Credit Karma. The Lift credit score is another educational score from Experian alone side its Experian/Fair Isaac Risk Model V2SM.
Where Can I See My Lift Score
Experian PLC said that it would start piloting the new credit score next month; the pilot will begin with a handful of lenders. It might take a while before the Lift score is part of lenders’ credit decision-making tools; piloted lenders have to wait on repayments before having full confidence in the new credit scoring model. While you are waiting for lenders to accept Experian’s Lift score, you can take steps to improve your credit profile and increase both your FICO and all your educational credit scores.
