The “Credit Catch 22”

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Mainstream lenders rely on credit reports to assess credit risk and make loans. Traditional credit bureaus only have data on the already banked. This creates a dynamic where in order to qualify for credit, you have to already have credit. It’s like applying for your first job and being told: ”We’d like to hire you, but we need someone with more experience.” This is the “Credit Catch 22” that acts to exclude many qualified low-income borrowers globally.