Have you ever utilized for a brand new bank card or mortgage simply to obtain the dreaded “inadequate credit score historical past” rejection? You’re not alone. TransUnion estimates that 45 million Individuals are credit score underserved[1]. Various credit score information could present an answer.
Various credit score information (i.e., not conventional credit score scores and reviews) will help you qualify for credit score merchandise even when you have got zero credit score historical past.
On this article, we’ll check out what different credit score information are and which lenders are utilizing this data to increase credit score merchandise to these new to credit score.
What Is Various Credit score Information?
Various credit score information is private finance-related data that doesn’t often seem in your credit score reviews. This may embody:
- Revenue
- Schooling
- Rental historical past
- Banking historical past
- Employment historical past
- Belongings (funding accounts, financial savings, residence, and many others.)
- Social media posts
This different credit score information will be obtained immediately from you or by way of using different credit score information bureaus, like ChexSystems, for banking historical past.
Collectors who use this data could use it completely or contemplate this different information along side your conventional credit score reviews and scores to make extra knowledgeable lending selections.
In a current Experian examine[2], a whopping 96% of lenders said that different credit score information is a greater indicator of creditworthiness, and even FICO is leaping on board to create new scoring fashions.
Whereas the credit score business has not totally made the swap, some lenders are forward of the curve. Beneath we’ll discover 10 lenders presently utilizing different credit score information to find out bank card/mortgage eligibility.
Credit score Playing cards
Right here’s a number of bank cards that base approval selections on different information.
1. Tomo
TomoCredit presents a cost card with a 7-day autopayment function to assist preserve your credit score utilization low. There’s no deposit and no curiosity.
When making use of for the TomoCredit card, your credit score will not be checked. As a substitute, Tomo seems to be at different credit score information. This consists of your banking historical past, as you’ll need to hyperlink to your present checking account(s).
Tomo recommends you hook up with all of your financial institution accounts, together with the high-balance ones, to make sure you get the very best credit score restrict doable.
| Fast Details | |
|---|---|
| Credit score Restrict | $100 – $10,000 |
| Curiosity Charge | 0% |
| Annual Price | $2.99/month |
| Safety Deposit | $0 |
| Rewards | Choose partnerships with DoorDash, Lyft, and many others. |
📖 Learn our full assessment right here for extra data on how the TomoCredit program works.
2. Petal
The Petal program presents 3 bank card paths based mostly in your creditworthiness and desired card options. All 3 are totally unsecured bank cards.
To complement conventional credit score scores, Petal developed the Money Rating, which seems to be at different credit score information akin to banking historical past and revenue. This money rating is used along side your credit score rating to find out your card eligibility.
You will need to hyperlink to your checking account to obtain a money rating.
| Fast Details | |
|---|---|
| Credit score Restrict | $300 – $10,000 |
| Curiosity Charge | 17.99% – 35.49% |
| Annual Price | $59 (Petal Rise solely) |
| Safety Deposit | $0 |
| Rewards | As much as 10% cashback at choose retailers |
Every of the three Petal playing cards presents completely different ranges for APR, credit score restrict, cashback, and many others. Petal gives a full breakdown of card variations on its homepage.
3. Chime
Chime presents a Credit score Builder Visa to these trying to enhance their credit score. You’ll want a Chime checking account and at the very least $200 in direct deposits to qualify for the Visa. There isn’t any credit score examine.
Chime works like a cost card. You switch funds out of your Chime account to your Visa card every month. These funds are used to cowl card transactions. Any remaining funds will be rolled over to the following month or transferred again into your Chime account.
| Fast Details | |
|---|---|
| Credit score Restrict | N/A |
| Curiosity Charge | 0% |
| Annual Price | $0 |
| Safety Deposit | Secured by Chime Checking account |
| Rewards | None |
👉 Be aware: Whereas Chime reviews like a bank card, they don’t report a credit score restrict or utilization.
📖 Learn our full assessment right here for full data on how the Chime Credit score Builder Visa works.
4. OpenSky
OpenSky presents a singular secured credit-building set of playing cards. There’s no credit score examine, and also you don’t have to hyperlink a checking account. All you might want to do is confirm your id.
Whereas it’s unclear how OpenSky determines eligibility, they record their approval price at 87%.
Each of OpenSky’s playing cards are secured, with the decrease rate of interest fundamental card charging an annual charge and the upper rate of interest Plus card having no annual charge.
| Fast Details | |
|---|---|
| Credit score Restrict | $200 – $3000 |
| Curiosity Charge | 22.39% – 29.74% |
| Annual Price | $35 ($0 for the Plus card) |
| Safety Deposit | $200 |
| Rewards | None |
👉 Be aware: After 6 months of use and on-time funds, OpenSky could prolong an invite to its unsecured Gold Card with no credit score examine wanted.
📖 Learn our full assessment right here for extra data on OpenSky® Secured Visa® Credit score Card.
5. Cred.ai
Cred.ai presents a zero-fee Unicorn Card and a Cred.ai deposit account. The Unicorn Card works like a cost card and is funded by your Credit score.ai deposit account.
Whereas cred.ai can examine your credit score, account approval is predicated in your banking historical past. Particularly, Cred.ai makes use of ChexSystems to find out eligibility.
As a part of the deposit account setup, you’ll have to hyperlink to your present checking account(s). Credit score.ai makes use of this information for approval and setting your Unicorn card credit score restrict.
| Fast Details | |
|---|---|
| Credit score Restrict | Varies |
| Curiosity Charge | 17.76% (waived with deposit account) |
| Annual Price | $0 |
| Safety Deposit | Secured with deposit account |
| Rewards | None |
📖 For full data on how the Unicorn Card works, in addition to a abstract of its distinctive security and banking options, try our full assessment right here.
6. Develop Credit score
The membership program provided by Develop Credit score is a credit-building digital cost card with devoted makes use of. Particularly, the cardboard is designated for paying subscriptions (i.e., Hulu, Netflix, and many others.).
To use for a Develop Credit score account, you’ll have to hyperlink to your banking establishment, which is what’s used to find out eligibility. Develop doesn’t use your credit score in its decision-making course of however could carry out a smooth pull to confirm id.
| Fast Details | |
|---|---|
| Credit score Restrict | $204 – $1800 |
| Curiosity Charge | $0 |
| Annual Price | As much as $99/12 months or $9.99/month |
| Safety Deposit | $17 (Construct Secured solely) |
| Rewards | Choose subscription reductions |
📖 Develop Credit score presents 4 completely different digital playing cards, every with a set month-to-month allowance and charge. For extra data on every of the memberships, learn our full assessment right here.
Loans
Some lenders additionally use different information. Listed here are among the presently obtainable choices.
7. Self
If you’re merely trying to construct credit score, Self presents a credit-building mortgage. You make month-to-month funds on this mortgage and obtain the stability (minus curiosity) on the finish of the compensation interval. You obtain $0 upfront whenever you take out the mortgage.
Since you’re basically loaning your self cash, Self doesn’t require a credit score examine, nor do they require you to hyperlink to your checking account.
| Fast Details | |
|---|---|
| Mortgage Quantity | $500 – $3000 |
| Curiosity Charge | 15.72% – 15.97% APR |
| Charges | $9 administration charge |
| Mortgage Phrases | 24 months |
📖 Along with the credit score builder mortgage, Self presents a Visa bank card with no credit score examine that’s secured by your mortgage account.
8. OppLoans
OppLoans is a mortgage market dedicated to providing unsecured private loans to a spread of people that don’t historically qualify. They work with a number of companion lenders and might immediately service loans in choose states.
OppLoans will request your revenue data (and presumably proof) and banking data to find out if you’re accredited for a mortgage and for a way a lot. OppLoans could do a smooth pull of your credit score, however there aren’t any minimal credit score eligibility necessities.
| Fast Details | |
|---|---|
| Mortgage Quantity | $500 – $4000 |
| Curiosity Charge | 160% APR* |
| Charges | Charges included in APR |
| Mortgage Phrases | 9 – 18 months* |
* Rates of interest and mortgage phrases can fluctuate by state. The above values are what OppLoans makes use of as an instance potential funds. Your charges and phrases could differ.
9. Upstart
This mortgage market presents private loans and auto refinance loans with a preapproval course of that doesn’t damage your credit score.
Not like among the different lenders on this record, Upstart will examine your credit score. A smooth pull is generated throughout preapproval, and the ultimate utility will lead to a tough pull.
Upstart additionally considers different credit score information akin to revenue and schooling. If in case you have little to no credit score, this may increasingly assist qualify you for a mortgage, however there may be no assure.
| Fast Details | |
|---|---|
| Mortgage Quantity | $1,000 – $50,000 |
| Curiosity Charge | 4.6% – 35.99% APR* |
| Charges | Origination charges are included in APR |
| Mortgage Phrases | 3 – 5 years |
* The APR vary was established utilizing a credit-score-only mannequin. The APR you obtain could also be outdoors this worth if different credit score information is used.
10. Earnin’
The Earnin’ app allows you to apply for interest-free money advances in your subsequent paycheck. You may request as much as $100 a day (max $750 whole). As soon as your paycheck hits your checking account, you’ll be debited the superior cash.
Earnin doesn’t require a minimal credit score rating; they don’t even examine your credit score. All they have a look at is your revenue and banking historical past. Relying on this data, they might alter your most day by day and pay interval values.
| Fast Details | |
|---|---|
| Mortgage Quantity | As much as $100/day and $750 per pay interval |
| Curiosity Charge | $0 |
| Charges | None (small charge for lightning deposit) |
| Mortgage Phrases | Debited routinely from subsequent paycheck |
Whereas Earnin doesn’t cost any charges for its providers, they do request ideas. Ideas are 100% non-compulsory.
Ultimate Ideas
Credit score doesn’t must be a catch-22. With different information, you may qualify for credit score merchandise with out having a credit score rating.
You’ll nonetheless wish to pay shut consideration to the charges and phrases as these no-credit-check merchandise generally include excessive charges or near-predatory rates of interest.
The excellent news is when you handle these starter playing cards/loans nicely, they’ll report positively to the credit score bureaus. This may make it easier to construct your credit score rating and keep away from future inadequate credit score historical past rejections.