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IBT: Wireless Carriers Offer ‘Bad Credit’ Phone Plans to Riskier Customers

by U.S. Financial Diaries

The International Business Times featured USFD data as part of a larger piece on new wireless plans for customers with poor credit history.   Earlier this week, launched a new service that allows users with bad credit to sign up for a 2-year contract if they've paid their bills on time for 12 consecutive months.  The story includes a quote from USFD principal investigator Jonathan Morduch, explaining alternate measures of credit worthiness and why they are important:

But the traditional credit scores don’t give you credit for slow and steady and reliable customer behavior and bill paying,” said Jonathan Morduch, Professor of Public Policy and Economics, NYU Wagner Graduate School of Public Service. “So the credit scores tend to reflect whether people have challenges and difficulties and how stretched they are. But they’re less good at capturing positive aspects of people’s lives.

To learn more about these new services and potential implications for households like those in the USFD study, click here.