Letters: Mind your credit score
[Re: Don’t penalise cash-strapped Brits, FCA warns insurers, 29 September]
As interest rates soar, the FCA’s call to lenders to offer borrowers solutions is a stark reminder that consumers’ needs must remain front and centre.
Against skyrocketing living costs and a mortgage industry in turmoil, our research shows half of lenders are still using outdated credit scoring models which don’t take into account transaction data from consumers’ bank accounts – potentially excluding millions of people who can afford credit.
The lending industry must unlock fairer affordability checks to best support consumers and businesses. New lending models are drawing on real-time data to access banking information such as payment history and income levels, to paint a holistic picture of peoples’ finances.
This is key to promoting financial inclusion, as people need access to safe, affordable and regulated borrowing options now more than ever.
Tasha Chouhan, Tink