This study examines a proposed approach to credit reporting in response to the COVID-19 pandemic. The relative narrow and targeted credit reporting response from the CARES Act appears to have been largely successful. However, there were calls by some members of Congress for an outright system-wide ban on credit reporting any adverse information, covering all consumers during (and for some period after) the COVID-19 crisis—a policy referred to as “suppression and deletion.” This research uses 5 million credit records from 2011 and 2017 to simulate the impact on credit scores and, more importantly, on consumer access to credit if the large-scale suppression and deletion policy were implemented.
This report looks at the potential impacts of negative credit data suppression or deletion measures during the COVID-19 pandemic period. While the proposed measures are well-intended, they harm more consumers than they help. Instead, the report recommends adding positive telecommunications payments to make the system fairer and more forgiving, giving consumers a chance to rebuild their credit history, since negative telecommunications data is already reported. This solution also protects the integrity of the national credit reporting system, vital for post-pandemic economic recovery.
This paper summarizes PERC’s research into alternative data.
This paper examines a range of policy and market issues associated with the proposed introduction of a public credit registry (PCR) in India.
This research analyzes a series of questions pertaining to the impacts on microfinance institutions (MFIs) when using credit bureau data (conventionally referred to as credit files) for purposes of underwriting credit; for the same purposes, it also analyzes credit scoring models and credit decisioning platforms that use credit bureau data.
This report presents findings from the pilot effort of the Credit Deserts Project, which aims to map the incidence of Credit Invisibility, in which consumers have credit reports with no or insufficient data with which to generate a traditional credit score. Previous research suggests that Credit Invisibles disproportionately live in lower income areas of communities and help form what we call Credit Deserts.
“The Credit Impacts on Low-Income Americans from Reporting Moderately Late Utiity Payments,” is a follow-up to the June 2012 report, “A New Pathway to Financial Access.” The new report addressess concerns some had about the impacts of reporting moderately late utility payments for low-income Americans.
This report details the impacts of more comprehensive credit reporting in Australia and New Zealand. The report summarizes the results from a joint undertaking by PERC and Dun & Bradstreet Australasia using credit data from 1.8 million Australians.
This study compares results with data from2005/2006 and 2009/2010 credit reports to assess the consumer credit impact of including fully reported alternative data in credit reports. The data was selected to capture the period during which unemployment and late payments spiked.
This study examines the impact and benefits that accrue to consumers, lenders, and utilities and telecommunications firms when telecoms and utilities report customer payment information to credit bureaus.