| Entities | |
| Topics and Issues | Alternative Data (18) Credit scores (37) |
In June 2023, the Federal Reserve Bank of Kansas City published a paper (Ying Lei Toh) on credit scores. The paper
examines the barrier traditional credit scores pose to obtaining affordable credit in the United States and discusses efforts to address this barrier. Using data from the 2019 Survey of Consumer Finances, she finds that traditional credit scores may indeed hinder a sizeable share of consumers from obtaining the credit they desire. Further, disparities in credit access across several sociodemographic groups match the disparities in their likelihood of having high traditional credit scores, suggesting lenders’ reliance on traditional credit scores may drive disparities in credit access.