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2023 Alternative Credit Data Impact Report

Understanding the opportunities and challenges of alternative credit data.
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Alternative Credit Data


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Gain Next-Generation Insights

Alternative credit data looks beyond traditional credit data, which typically focuses on long-established credit activities. These expanded credit insights, when paired with traditional credit behaviors, deliver a more comprehensive view into a consumer's creditworthiness.
Public records 

 Public Records

Identity insights

 Identity Insights

Stability insights

Stability Insights

Address insights

 Address Insights

Alternative credit

Alternative Credit
Seeking Insights

Asset insights

Asset Insights 

     Alternative Data Offers Expanded Insight

      An improved understanding of consumer credit risk can help you see
      opportunity  where others simply see risk.

Benefits of Non-Traditional Credit Sources

The key to better lending decisions is incremental predictive insights.

Using scoring models and attributes which tap into proven and reliable sources of alternative credit data allows you to:

Extend better offers

Improve credit decisions on the margin by more
effectively evaluating borderline applicants.

Grow approval rates

Identify off-margin consumers underestimated 
by traditional credit scores.

Expand your addressable market

Seize opportunities to turn credit invisibles — both
thin-file and no-file consumers — into valuable customers.

Improve booking rate and profitability

Extend more accurate pricing and terms to consumers across the credit spectrum who have been misclassified by traditional credit assessments.

Enhance portfolio management process

Monitor changes across the customer lifecycle. 

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Incorporating alternative credit data can deliver greater visibility into credit risk than using traditional data alone.

Alternative credit data goes beyond traditional credit data to deliver a broader, more comprehensive picture of consumer creditworthiness and associated risk. Non-traditional data like professional licenses, asset ownership and public records can help bridge the gap when paired with traditional credit data.

Alternative Credit Data Impact Report

A study of the adoption, utilization and impacts of alternative data

Impact of Alternative Data Report Infographic

Gain a better understanding of alternative data adoption and usage trends

Alternative Consumer Data: What You Should Know

How financial inclusion in consumer lending can be achieved using alternative credit data.

A New Perspective on Small Business Lending

Lenders are turning to alternative credit data to gain additional insights to fuel portfolio growth.

“84% of respondents use alternative credit data in marketing and credit risk assessment across the customer lifecycle.”

LexisNexis Risk Solutions delivers a comprehensive report on the state of alternative data usage across the lending ecosystem. 225 financial institutions were surveyed, collecting responses from banks, credit unions, non-bank lenders and fintech organizations to gain insights on how alternative data is being leveraged in lending decisions, origination strategies and prescreen marketing.

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Financial inclusion, increased visibility and improved segmentation are driving adoption of alternative credit data

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Alternative credit data is driving meaningful business impacts

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Overall satisfaction with alternative data is high, though some challenges and barriers remain

    The 2023 Alternative Credit Data Impact Report offers more insights into
    alternative data usage and outcomes, including deep dives into:

  • The top drivers of alternative data adoption

  • Benefits of incorporating alternative data and its impacts on revenue growth

  • Challenges that may be limiting adoption rates

Fostering Financial Inclusion with Alternative Data

It’s time to take an alternative look at financial inclusion.

20% of U.S. consumers have little to no credit footprint using only tradeline credit indicators, but many may actually meet lenders’ risk standards.1 Many in this diverse group are eager to access credit products and services but are too often underestimated by traditional credit scores.

Alternative data can help fill the gaps in credit history to present a more robust view of creditworthiness—allowing lenders to more accurately assess consumer credit risk, expand addressable markets and extend new financial opportunities to historically underserved populations.

Shifting Perspectives on Financial Inclusion

Building financial inclusion strategies that drive revenue and increase customer opportunity.

Alternative data insights can open a new path to inclusion and opportunity.

Historically, marginalized communities have consistently lower rates of credit scorability with traditional credit scores. Augmenting traditional credit scores with alternative credit data can help lenders build a more complete picture of creditworthiness.

Implementing alternative data into credit risk assessment can help lenders better serve overlooked creditworthy individuals and turn thin- or no-file consumers into valuable customers.

Alternative data could help financial institutions drive meaningful inclusion in underserved communities2.

Pie chart and key image

Lower rates of credit scorability
Only 68% of African American and
73% of Hispanic communities are
scorable using traditional credit data

Expand scorable consumers
Evaluate 28% more African American
and 22% more Hispanic consumers
by leveraging alternative data

Gain greater clarity
23% boost in ability to score and
evaluate traditionally unscorable

1. LexisNexis Risk Solutions Information Hub, 2021
2. LexisNexis Risk Solutions RiskView Financial Inclusion eBook

Gain Unprecedented Insight into Risk

Unlock a more robust view of consumer creditworthiness.

Traditional credit scores have long been a strong indicator of consumer credit risk — but in today’s shifting economic environment, lenders need fresh tools to drive portfolio growth and stay competitive.

Alternative data can be used to augment tradeline credit indicators, uncovering hidden risk factors that traditional credit data might miss. Using alternative data can give lenders the nuanced insights they need to improve consumer segmentation, provide more competitive terms and limit exposure to risk.

Enhance your credit risk assessment.

Alternative data allows lenders to sharpen segmentation based on the conventional broad categories — such as near prime, prime and super prime — into granular subgroups wherein credit scores fall within 20-30-point ranges.

Leveraging additional insights can allow lenders to uncover notable differences among consumers within the same traditional credit tier and thus make better decisions suited to the individual applicant.


of consumers being in
a more prime score band1


of consumers being in
a less prime score band1

The benefits of an expanded view of risk.

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Gain greater visibility
into changing credit risk

Consumers icon

Better serve consumers with
improving financial situations

Exposure icon

Identify evolving risk factors
and mitigate exposure

Bullseye icon

Attract and retain more
profitable accounts

Increasing rates icon

Boost booking rates and average
customer lifetime values

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Increase your competitive edge

1. LexisNexis Risk Solutions RiskView Refining Prime eBook
This article is for educational purposes only and does not guarantee the functionality or features of LexisNexis products identified. LexisNexis does not warrant this article is complete or error-free .

Download the 2023 Alternative Credit Data Impact Report to learn more