by Sharelle Burt
March 26, 2025
The tool launch timing is appropriate during a time when low credit score carrying borrowers have trouble improving their credit standing.
Consumer credit reporting company Experian announced a new resource called Cashflow Score to assist in heightening financial access to people with limited credit history, Pymnts reported.
Experian’s financial and marketing service group president, Scott Brown, said the company feels augmented cash flow insights will ultimately bring in more consumers and help them develop decisions. The target of the new platform is to give lenders a better understanding of applicants’ financial behavior in hopes of helping “credit invisible” — or people with little to no credit history — improve their financial access by only using data from a bank account. “We believe in a future where the power of credit data can be augmented with cashflow insights to enhance decisions and ultimately bring more consumers — including those who are traditionally underserved — into the financial ecosystem,” Brown said.
“We’re committed to leveraging our decades of data and analytics experience to deliver innovative and easy-to-use open-banking solutions to the industry while creating new opportunities for consumers.”
Experian describes its new solution as a way to leverage consumer-permissioned transaction data that clients provide, as data shows lenders are seemingly reluctant to provide credit to consumers who are “thin file or credit invisible consumers.” A press release from Business Wire showcased how Cashflow Score works, starting with Experian being a technical service provider on behalf of clients, then helping to categorize the transaction data, and then calculating attributes that are used to come up with the score.
Finally, the scores — ranging from 300 to 850 — are sent back to the lender and can be utilized to make decisions on things like credit cards, personal loans, or auto loans, catering to close to 20% of Americans not having conventional credit scores.
The tool launch timing is appropriate during a time when low credit score-carrying borrowers have trouble improving their credit standing. “Leveraging these insights can help lenders make more informed decisions, particularly for thin file and credit invisible consumers who have a bank account,” the company said.
Research found that 29% of subprime consumers who applied were denied a credit card, in comparison to 12% of super-prime consumers. In addition, subprime consumers have been trying and are willing to identify new ways to improve their credit. “The attack is two-pronged, where these same consumers are using the credit they do have to manage how they pay for essential goods and services, and satisfy those obligations,” a Pymnts report read.
Experian’s Cashflow Score is the latest solution to validate expert data science and to guarantee accuracy and reliability.
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