Identifying the “Credit Invisibles”

According to the CFPB, 1 in 10 Adults have no traditional credit score.

The CFPB published a report that describes “Credit Invisibles”. These are consumers who are not part of the mainstream financial system, due to their lack of credit history. There are 26MM consumers without any credit history, and another 19MM consumers with such limited credit history that they cannot be scored using traditional credit scores. In credit industry vernacular, these consumers are referred to as “No File” and “Thin File” consumers. Almost everybody pays monthly bills like rent, mobile phone, utilities, and insurance. These payments can be used to eliminate the No File and Thin File situation.