May 07--About 1 in 10 Americans have no credit history, according to a new report.
The report, released this week by the Consumer Financial Protection Bureau, found that 26 million Americans are "credit invisible," meaning they have no credit history with a nationwide consumer reporting agency.
At the same time, an additional 19 million American consumers -- or 8.3 percent of the adult population -- have credit records that are "unscorable" by a credit reporting agency because they don't have enough of a history, according to the report.
"A limited credit history can create real barriers for consumers looking to access the credit that is often so essential to meaningful opportunity -- to get an education, start a business or buy a house," said bureau Director Richard Cordray.
The report also noted that black and Hispanic consumers and those who live in low-income neighborhoods are more likely to have no credit history.
The three big national credit reporting agencies, Equifax, Experian and TransUnion, may possess information about a consumer's bank loans, car loans, credit card bills, student loans and mortgages. They may track how much a consumer owes creditors, their payment histories, and records of court judgments or liens. Credit histories help the agencies determine how likely consumers are to repay their debts, according to the report.
The analysis was conducted using information from a random sample of credit records scrubbed of identifying information that were purchased from one of the credit reporting agencies. The bureau then compared that information with 2010 census data and determined how many U.S. consumers had limited or "unscored" credit records.
crshropshire@tribpub.com
