Business

New Scoring System Aims to Help People with Poor Credit

Published

11 years ago

April 3, 2015

This April 22, 2005 file photo shows logos for MasterCard and Visa credit cards at the entrance of a New York coffee shop. Fair Isaac, the company behind the widely-used FICO credit score, on Thursday, April 2, 2015 announced a pilot program to help millions of Americans get easier access to credit, based on their record of paying utility bills, instead of their history of loan repayments. (AP Photo/Mark Lennihan, File)

KEN SWEET, AP Business Writer

NEW YORK (AP) — People struggling with a bad credit score, or lack of one, could benefit from a program rolling out in the next few months aimed at making it easier to get a Visa or MasterCard.

The company behind the widely-used FICO credit score announced Thursday a pilot program to help millions of Americans get easier access to credit, based on their record of paying utility bills, instead of their history of loan repayments.

The potential reach of the program is huge. An estimated 53 million Americans, or a quarter of the U.S. adult population, don’t have FICO scores created by the company Fair Isaac. Roughly 90 percent of all lending decisions — credit card applications and auto loans, among others — are based on that score. Banks would normally deny credit to anyone without one, or they could charge them significantly higher interest rates, because the applicants would be considered risky. Scores range from 300 — poor — to 850 — perfect — and are determined by a borrower’s credit payment history, outstanding balances and length of credit history.

These consumers are often the young, without an established credit history, or immigrants, who are new to the U.S. A disproportionate number of these “unscoreable” people are minorities as well, particularly black and Hispanic consumers, says Ankush Tewari, senior director of market planning at LexisNexis Risk Solutions. LexisNexis is one three companies involved in the program.

The program took two years to develop and came from Fair Isaac. Research showed people who have a history of paying utility bills on time would also pay credit card bills on time.

Under the program, Fair Isaac, working with LexisNexis and credit agency Equifax, will create a payment history profile from a person’s utility bills and public property records. FICO would use that pooled data determine an “alternative” credit score when a person with a poor credit history, or none at all, applies for a credit card.

The scores are being made available to the 12 largest credit card issuers, but Fair Isaac did not say which banks will be participating in the program. A spokesman from JPMorgan Chase, the nation’s largest credit card issuer by number of cards, declined to comment. Representatives from American Express and Citigroup did not respond to requests for comment.

The program, which does not have a name yet, is not designed to replace the traditional FICO score and will only be available to credit card issuers initially. Once a person obtains a card using this alternative score, they would be able to establish a credit payment history. They could then apply for auto or home loans.

“Most people have a cellphone, gas or electric bill, and the size of those payments each month can be sizeable,” says Jason Flemish, vice president of consumer risk and credit products at Equifax. “So let’s give them the opportunity to benefit from paying those bills on time.”

Banks have a financial interest in the program. The millions of Americans without a FICO score are potential borrowers who could get credit cards. Because these borrowers would have limited credit history, banks could charge high interest rates.

The data being gathered by Equifax and LexisNexis is also covered under the Fair Credit Reporting Act, says Tewari of LexisNexis. People will be able to dispute any negative event, like a contested utility bill payment, in their credit report.

“All you have to do is just pay your bills on time. It will give you access to credit system,” Flemish says.

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Activism

OP-ED: AB 1349 Puts Corporate Power Over Community

Since Ticketmaster and Live Nation merged in 2010, ticket prices have jumped more than 150 percent. Activities that once fit a family’s budget now take significant disposable income that most working families simply don’t have. The problem is compounded by a system that has tilted access toward the wealthy and white-collar workers. If you have a fancy credit card, you get “presale access,” and if you work in an office instead of a warehouse, you might be able to wait in an online queue to buy a ticket. Access now means privilege.

Published

22 hours ago

January 9, 2026

Oakland Post

Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland

By Bishop Joseph Simmons, Senior Pastor, Greater St. Paul Baptist Church, Oakland

As a pastor, I believe in the power that a sense of community can have on improving people’s lives. Live events are one of the few places where people from different backgrounds and ages can share the same space and experience – where construction workers sit next to lawyers at a concert, and teenagers enjoy a basketball game with their grandparents. Yet, over the past decade, I’ve witnessed these experiences – the concerts, games, and cultural events where we gather – become increasingly unaffordable, and it is a shame.

These moments of connection matter as they form part of the fabric that holds communities together. But that fabric is fraying because of Ticketmaster/Live Nation’s unchecked control over access to live events. Unfortunately, AB 1349 would only further entrench their corporate power over our spaces.

Power over live events is concentrated in a single corporate entity, and this regime operates without transparency or accountability – much like a dictator. Ticketmaster controls 80 percent of first-sale tickets and nearly a third of resale tickets, but they still want more. More power, more control for Ticketmaster means higher prices and less access for consumers. It’s the agenda they are pushing nationally, with the help of former Trump political operatives, who are quietly trying to undo the antitrust lawsuit launched against Ticketmaster/Live Nation under President Biden’s DOJ.

That’s why I’m deeply concerned about AB 1349 in its current form. Rather than reining in Ticketmaster’s power, the bill risks strengthening it, aligning with Trump. AB 1349 gives Ticketmaster the ability to control a consumer’s ticket forever by granting Ticketmaster’s regime new powers in state law to prevent consumers from reselling or giving away their tickets. It also creates new pathways for Ticketmaster to discriminate and retaliate against consumers who choose to shop around for the best service and fees on resale platforms that aren’t yet controlled by Ticketmaster. These provisions are anti-consumer and anti-democratic.

California has an opportunity to stand with consumers, to demand transparency, and to restore genuine competition in this industry. But that requires legislation developed with input from the community and faith leaders, not proposals backed by the very company causing the harm.

Will our laws reflect fairness, inclusion, and accountability? Or will we let corporate interests tighten their grip on spaces that should belong to everyone? I, for one, support the former and encourage the California Legislature to reject AB 1349 outright or amend it to remove any provisions that expand Ticketmaster’s control. I also urge community members to contact their representatives and advocate for accessible, inclusive live events for all Californians. Let’s work together to ensure these gathering spaces remain open and welcoming to everyone, regardless of income or background.

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Oakland Post: Week of December 31, 2025 – January 6, 2026

The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026

Published

1 week ago

January 2, 2026

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Big God Ministry Gives Away Toys in Marin City

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.

Published

2 weeks ago

December 29, 2025

Oakland Post

From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.

By Godfrey Lee

Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.

Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.

A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.

Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.