Good news for more than 60 million US adults who do not have credit scores: Transunion has just released a new product that can possibly produce a credit score for you.
Instead of evaluating your history with debt only, as most credit scores do, Transunion's new Transunion alternative bank risk score is also considering your banking history. That is, even if you have never had a credit card or loan, your history with checking accounts and savings can help you build a credit score.
“Truvision's alternative bank risk score provides a balanced look by incorporating positive and negative banking data,” said Liz Pagel, Sub -President of Lending Consumers in Transunion. “This can help users with a limited or no credit history to access credit, ultimately promoting financial inclusion and stability.”
So far, transunners are tight about the more detailed details of its new scoring model, but a pagel shared that it ranges from 500 to 900, and will be used only when consumers apply for unauthorized loans (ie loans with no parallel).
When you apply for a personal loan, many lenders look at your traditional credit scores to decide if you are eligible. But now, they can also choose to remove your Transunion Transunion alternative bank risk score.
When will a borrower pull this score? Transunion has just presented the Truvision alternative bank risk score, so your lender may not have access to it again. But as it is adopted more widely, lenders are most likely to draw this score if you do not have a credit history, or are not eligible for a loan based on your traditional credit scores.
Instead of just rejecting your application, the lender can use this new score calculator to evaluate your last five years of checking and savings account history and decide if you are eligible.
Read more: 10 Tips to improve your credit score in 2025
Transunion says he uses positive and negative data from your banking history, but the credit center refused to specify what data is weighed in their new score.
For a sense of what can be included, consider reports and other scores based on your banking information, such as those of Chexsyystem and Early Warning Services (Ews). These companies draw up your negative banking information, including cases where you mistreated an account or cheated fraud. Here is some of the information they consider:
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Account Requests: Number and frequency.
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Closing Accounts: Close involuntary accounts and the reasons for the closure.
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Non -payment bills: Overdrafts and bank fees you haven't paid.
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Checking Writing History: Checks, bouncing checks, and fraud checked.
If you want to learn more about your banking history, you can remove your ChexsySystems and/or EWS report (both are free to pull once a year) and give them a review.
Read more: Does closing a bank account hurt your credit score?
Details of how Truvision's alternative bank risk scores are counted still foggy, so we can only do how educated speculation can improve them. As with credit cards and loans, healthy account management practices are probably the key.
Here are a few healthy habits to practice in terms of banking:
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Limit your new bank account requests.
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Avoid overdrafts and unpaid bank fees.
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Pay any negative balances or bank fees as soon as possible.
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Write checks only when you have the money to support them.
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If you are not eligible to open your own bank account, ask a loved one with a good banking history to add you to their account as a co -owner.
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Never open a bank account in conjunction with someone with a history of banking problems.
Read more: 7 ways to build credit – without credit card
To get a credit score from FICO, you need to either get a credit card or loan open for at least six months, or you need to have one or more accounts reported to the credit centers during the six Last month.
If you want to open your credit card or first loan but do not qualify, consider asking a loved one with good credit to add you as an authorized user on one of their credit cards. If that's not an option, try applying for a guaranteed credit card.
If you have been rejected for a new checking account, look for a bank or credit union that offers “second chance” accounts, which is supposed to be for people with past banking issues. If you are still not eligible, consider using a prepaid card issued by a bank for some of your banking needs.
Read more: Here's what to do if your bank account application was rejected
Transunion has not released a list of lenders using their Truvision alternative bank risk score. To find out if your lender is using it, give them a call.