New tool to generate credit scores using bank data

Good news for over 60 million US adults who don’t have credit scores. Transunion has released a new product that could potentially generate a credit score for you.

Instead of valuing your history solely in debt, like most credit scores do, Transunion’s new Truvision Alternative Bank Risk score also takes into account your bank history. In other words, even if you have never had a credit card or loan, your checking and savings account history can help you build your credit score.

“We are committed to providing a range of services to our customers,” said Liz Pagel, Senior Vice President of Consumer Lending at Transunion. “This will help ensure that credit is accessible to consumers with limited or uncredited credit history, ultimately promoting financial inclusion and stability.”

So far, Transunion has been chock-full of the details of the new scoring model, but Pagel ranges from 500 to 900, and when consumers apply for unsecured loans (i.e. unsecured loans). We shared that it is only used for.

When you apply for a personal loan, many lenders look at traditional credit scores to determine whether they are eligible. But now you can also subtract the Truvision Alternative Bank risk score from Transunion.

When will the lender take this score? Transunion has just introduced a Truvision Alternative Bank risk score, so lenders may not be able to access it yet. However, as it is more widely adopted, lenders are most likely to subtract this score if they have no credit history or are not qualifying for a loan based on their traditional credit score.

Instead of simply rejecting the application, lenders can use this new score calculator to evaluate the history of checks and savings accounts over the past five years to determine whether they are eligible.

read more: 10 Tips to Improve Your Credit Score in 2025

Transunion said it uses both positive and negative data from the bank’s history, but the credit department refused to specify which data is in the new score.

To understand what’s included, consider other reports and scores based on bank information, such as bank information. Chexsystems and Early warning service (EWS). These companies will compile negative banking information, including cases where you abuse your account or commit fraud. Here are some of the information they consider:

• Account Application: Number and frequency.

• Account closure: Reasons for unwilling account closure and closure.

• Unpaid invoice: Overdraft and bank fees that you have not paid.

• Check your writing history: Return the check, bounce the check, check for fraud.

If you want to learn more about your bank history, you can pull out Chexsystems and EWS reports (both freely draw once a year) for reviews.

read more: Will closing my bank account hurt my credit score?

Details about how risk scores for Truvision Alternative Bank are calculated are still fuzzy, so you can only make educated speculations on how to improve them. Just like credit cards and loans, healthy account management habits can be key.

When it comes to banking, there are some healthy habits to practice.

• Restrict applications for new bank accounts.

• Avoid overdrafts and unpaid bank fees.

• Repay your negative balance or bank fees as soon as possible.

• Write a check only when you have money to back them up.

• If you are not entitled to open your own bank account, ask a loved one with a history of banking to add it to your account as a co-owner.

• Do not open a joint bank account with someone with a history of banking problems.

read more: 7 Ways to Build Credits – Without a Credit Card

To obtain a credit score from FICO, you must have either open a credit card or loan for at least 6 months, or one or more accounts reported to the Credit Bureau in the past six months.

If you want to open your first credit card or loan but are not eligible, consider asking your loved one for good credit, as if you add it to one of your credit cards as a certified user. If that’s not an option, try applying for a secured credit card.

If you are denied a new checking account, look for a bank or credit union that offers a “second chance” account for people with past banking problems. If you still don’t qualify, consider using a bank-issued prepaid card for some of your bank’s needs.

read more: What should I do if my bank account application is rejected?

Transunion has not released a list of lenders who use the Truvision Alternative Bank risk score. Call to see if the lender uses it.