A number of US banks have launched a pilot scheme to issue credit to people with no credit score.
In Brief:
Around 10 banks are taking part, including JPMorgan Chase, Wells Fargo and US Bancorp.
They’ll assess creditworthiness using account balances and overdraft history.
The banks will be able to use data from other financial institutions.
What does this mean?
This scheme, backed by the US government, aims to make credit available to those who would traditionally have struggled to access it. The Wall Street Journal, reporting on the matter, cited that according to Fair Isaac 53mn adults in the US do not have a credit score.
