New scoring tools empower credit weaklings
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The positives
These new forms of credit scoring are a wedge into the traditional credit market that many consumers can use to prove to lenders that they are a good credit risk. "There are many people who may be creditworthy but who don't get credit because of the limits of the traditional FICO score," says Bruce McClary of Clearpoint, a consumer credit counseling agency. "For example, many Hispanics immigrants use cash rather than credit. They save, which is very admirable, but they aren't establishing any type of credit history."

Many other consumers may be able to access credit through nontraditional scoring methods. These include recent high school or college graduates, divorcees or widows and people with some blemishes on their traditional credit report.

"These scores open up a whole new world of opportunity for people who have chosen not to access credit or who have had issues with credit," says Cate Williams, vice president for financial literacy for Money Management International, a consumer credit counseling agency.

The negatives
While many consumers who haven't had access to credit may applaud these new scores, other consumers may rue the day that a lender relied on one of these scores if that credit isn't used wisely.

"There are problems that could arise with any system. There is always the potential for abuse where you could have predatory lenders using these scores to reach people who they would otherwise not be able to get to," says McClary.

Williams warns consumers not to be tempted into taking on more credit than they can handle. "If you get a credit card as a result of these new scoring models, ask yourself what do you need that card for," she says. "Nine out 10 people will say it is only for emergencies, but a shoe sale or dinner out is not an emergency. Also find out what costs are involved in any loan or credit card."

As with traditional credit reports and the traditional FICO score, the newer scores are only as good as the data they are built on. Just as there can be mistakes in your credit report, inaccurate information obtained on your nontraditional payments can negatively impact your ability to get loans. "Fair Isaac is becoming a specialized consumer reporting agency so the Expansion score will be a dispute resolution process where you can fix problems with this score," says Friery.

Since PRBC is consumer-driven, consumers will have free access to their data once they are enrolled in this program. At this time, it's not clear what access consumers will have to eFunds Debit Reports or Anthem Scores since they are so new.