As early as this fall, banks such as JPMorgan Chase, Wells Fargo and U.S. Bancorp will launch a collective pilot program that factors in data from app

Banks to offer credit cards to people without credit scores

submited by

Style Pass

2021-06-06 21:00:08

As early as this fall, banks such as JPMorgan Chase, Wells Fargo and U.S. Bancorp will launch a collective pilot program that factors in data from applicants' savings and checking accounts to boost their chances of getting a credit card, the Wall Street Journal reported.

The program will include data from across banks and is aimed at helping those who are financially responsible but haven't been able to build credit apply and get credit cards, signaling a major shift in access that could help millions of American adults establish and boost credit.

"It can definitely be a game changer for those that perhaps haven't been able to be afforded the opportunity to extend credit previously," said Greg Giardino, a certified financial planner and financial advisor at J.M. Franklin & Company in Tarrytown, New York. "I think it's a great idea."

A credit score is basically an assessment of risk that financial institutions use to determine how to lend to consumers. Without a credit score, it can be difficult to access certain things such as credit cards and bank loans, and lenders won't give those borrowers as favorable terms.