Money: New CFPB Rule Could Make It Easier to Switch Banks

“We think it’s a promising alternative to traditional credit reports and credit scores,” she says, adding that it could lead to better, more accurate determinations of borrowers’ creditworthiness than traditional credit reports. Circumstances beyond a person’s control like illness or job loss can tarnish their credit, while cash-flow underwriting provides more visibility into people’s day-to-day financial activity, she says. “I think it should be the future of credit underwriting.”

Chi Chi Wu, senior attorney at the National Consumer Law Center