What is Alternative Credit Scoring and how does it work? Everything you need to know

Traditional bureau credit scores have long been the primary factor in determining a borrower's creditworthiness for retail lending. However, this often leaves many potential borrowers out in the cold, especially first-time borrowers without established credit histories.  With the rise of alternative credit scoring (ACS) methods, banks and other non-banking financial institutions can now access a wider range of data points to make more informed lending decisions. This shift has changed the way credit worthiness is ascertained and loans are approved while contributing to a decrease in the default rates for many lenders. 

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