- First, banks tend to reduce credit availability during a downturn, which is when people most need help.
- There’s a bit of a catch-22 in the system, in that what you need to persuade an institution to loan you money is a credit history you don’t have because no one will loan you money.
- There are complementarities between financial and non-financial data: combining credit scores and digital footprint further improves loan default predictions.
[Via]
