Lord Bird’s Credit Worthiness Bill has significantly raised the profile of current credit scoring methods - Responsible Finance

Posted On: 
9th July 2018

The current credit scoring approaches available to both mainstream and affordable lenders often do not provide the information needed to make accurate lending decisions for all consumers, says Reponsible Finance. 

The current credit scoring approaches available to both mainstream and affordable lenders often do not provide the information needed to make accurate lending decisions for all consumers.

Our report ‘Scaling Up Affordable Lending: Inclusive Credit Scoring’ launched earlier this year highlighted the limitations of traditional credit scoring models.  It raised concerns that the current credit scoring methodology is not fit for purpose for all segments of the consumer market and excludes many people from accessing affordable credit.  Lord Bird’s Credit Worthiness Bill has significantly raised the profile of this issue. 

Responsible finance providers are key to tackling problem debt and financial exclusion

RF Blog: Responsible finance providers are key to tackling the ‘poverty premium

Lord Bird: Let’s end this credit rip off, and puncture the poverty premium, together

It is essential that we see a range of changes made to credit scoring approaches to ensure people are not unfairly excluded from access to affordable credit, instead are forced to use high cost credit and so at risk of financial exclusion