JPMorgan, Others Join Pilot Program That Will Issue Credit Cards To Customers With No Credit Scores

Several major US banks have decided to begin sharing customer’s deposit account data in an effort to extend credit to individuals that have previously struggled getting them.

According to the Wall Street Journal which cited people familiar with the matter, JPMorgan, Wells Fargo, and US Bancorp, among others, have teamed up to increase chances of credit card approval among individuals that do not have credit scores but are financially responsible. As part of the government-backed initiative, the banks involved will share amongst themselves information from an applicants’ savings or checking accounts as well as their overdraft history in an effort to offer credit to a broader range of customers.

The latest effort, if successful, marks a drastic shift in the underwriting procedures of major banks, which have thus far only relied on credit scores and credit reports as the main determinant of credit approval. The pilot program is expected to launch sometime this year, with approximately 10 banks already committing to the data exchange.


Information for this briefing was found via the WSJ. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold/Silver: People Can Still Lose Money In This Bull Market!? | Rick Rule

He Said $300 Silver!? | Peter Krauth

Dollar Will Collapse, Gold and Silver Are the Only Safe Havens | Jim Rogers

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Capital Flows To East From US, Swiss Markets Following Bank Runs

The recent bank failures of Credit Suisse and Silicon Valley Bank may have resulted in...

Monday, March 27, 2023, 10:15:00 AM

BNY Mellon to Begin Adopting Digital Currencies, Will Treat Bitcoin as Regular Asset

The utilization of digital assets by major financial platforms has been accelerating, after Paypal and...

Friday, February 12, 2021, 10:41:00 AM

JPMorgan CEO Warns That The US Could Be Heading Into ‘Something Worse’ Than A Recession

JPMorgan CEO Jamie Dimon is seeing storm clouds ahead.  According to a Yahoo! Finance report...

Tuesday, August 16, 2022, 03:53:00 PM

The Next SBF? Charlie Javice Charged With Fraud After Selling Financial Aid Startup ‘Frank’ to JPMorgan

Charlie Javice, the founder behind student loan startup Frank, is facing criminal charges related to...

Tuesday, April 4, 2023, 05:17:58 PM

Canada’s Banking Regulator Will Cease Extending Loan Payment Deferrals By The End Of September

It appears that the rules for mortgage deferrals have changed once again. The Office of...

Tuesday, September 1, 2020, 05:13:00 PM