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26 Million Consumers Credit Invisible, 19 Million Unscored: CFPB Report

May 8th, 2015 · No Comments · Consumer Info

by Kristy Welsh

(Last Updated On: February 26, 2018)

26 Million Consumers Credit Invisible, 19 Million Unscored: CFPB ReportWhile most of us take our credit score as a given – good or bad – for millions of Americans it is a non-issue. That’s because they either have no credit history to speak of, or what history they do have is not enough to generate a credit score.

According to a new report from the Consumer Financial Protection Bureau (CFPB), 26 million adult American consumers are credit invisible and another 19 million are unscored.

What It Means

Credit Invisible: No credit history with a nationwide credit bureau (e.g., Equifax, TransUnion, Experian).

Unscored: Too little credit history, or not enough recent credit history, to generate a credit score with a nationwide credit bureau.

“When consumers do not have a credit report, or have too little information to have a credit score, the impact on their lives can be profound, says CFPB Director Richard Cordray.

“It can preclude them from accessing credit and taking advantage of certain opportunities. And given that we found that consumers in low-income neighborhoods are more likely to be credit invisible or unscored, this may be limiting opportunities for some of the most economically vulnerable consumers.”

Who are the Credit Invisible and Unscored?

Americans most likely to be credit invisible or unscored are Black consumers, Hispanic consumers, and those in low-income neighborhoods:

  • 30 percent of consumers in low-income neighborhoods are credit invisible
  • 15 percent of consumers in low-income neighborhoods are unscored
  • 15 percent of Black and Hispanic consumers are credit invisible
  • 13 percent of Black consumers are unscored
  • 12 percent of Hispanic consumers are unscored

In contrast, 9 percent of White consumers are credit invisible, 7 percent unscored.

“We are dedicated to fostering a responsible marketplace that helps consumers get ahead rather than harming them and setting them back,” says Director Cordray.

“We will be able to take the information from today’s report and apply it in the future as we continue to work on behalf of the most vulnerable consumers among us.”

No credit or bad credit? Learn how to build a (positive) credit history.

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