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10% of Americans are "Credit Invisible"
Wednesday, May 6, 2015
About one in 10 American adults have
no credit history according to a report from the Consumer Financial Protection
Bureau, a total of 26 million persons who are "credit invisible." These are persons who have no information on
file with any of the nationwide consumer reporting agencies.
histories contain data on a consumers bank loans, car loans, credit card bills,
student loans, and mortgages; details about the terms of credit, totals owed,
payment histories, and any liens or judgments that may have been incurred. This information is used by the agencies to
produce three digit credit scores. Most decisions to grant credit and set
interest rates for loans are made based on information contained in credit
reports and on the resulting credit scores. As a result, those consumers who
have a limited or nonexistent credit history face greater hurdles in getting
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