eCredable’s AMP Credit Score uses other payment history — like rent and utility payments — to prove creditworthiness. The bank will consider the AMP Credit Scores of those who apply through the eCredable website for the BBVA Compass NBA American Express Card. The pilot project underscores BBVA Compass’ drive to work with the industry disruptors who are finding novel ways to serve clients, especially when it means bringing the underserved into the banking system.
"Our mission is to serve our clients and help them build brighter futures, and sometimes that means from the very ground up," said BBVA Compass Executive Director of Payments Ryan Kraynick. "Working with eCredable will allow us to meet the needs of a wider spectrum of credit-worthy consumers who for various reasons have not been able to create a traditional credit profile."
According to the Consumer Financial Protection Bureau, there are 26 million adults without a credit file, while 19 million do not have enough history to be scored using traditional scoring models. Dubbed "credit invisibles," they often resort to alternative financial services — check cashers and payday lenders among them.
eCredable, which is a Consumer Reporting Agency under the Fair Credit Reporting Act, works to bridge the credit chasm by giving consumers alternative means of developing a credit score. To verify their payment history, consumers pay eCredable to contact their providers and verify their previous 24 months of payment history. The information is used to create eCredable’s proprietary AMP Credit Score.
"Every day we see consumers with an excellent track record of paying their monthly bills on time, but are still shut out of the mainstream financial services system," said Steve Ely, CEO of eCredable. "We’re very excited about working with BBVA Compass to help these consumers gain access to affordable credit."
As part of the pilot, BBVA Compass will report the new cardholders’ monthly payment history to national credit bureaus to help build or add to their credit files, thereby helping to move them into mainstream financial services.
"BBVA Compass’ mission is to build a better future for people," said Kraynick. "This initiative with eCredable is fulfillment of that mission in that it has the real possibility to change people’s lives by giving them access to services they would otherwise be without."
