No alternative to alternative scoring?

Since the end of the Great Recession, many citizens have approached lenders, asking to borrow money to make ends meet. However, because the economic turmoil caused many consumers to miss vital monthly bill payments, some would-be borrowers have been turned away because of poor credit scores or shaky histories. 

However, some lending companies, seeing this trend cause a downturn in business, have either lowered their standards or looked into alternative credit scoring. Many consumers don't realize that there are a bevy of credit rankings that can be used to determine if lending would be safe, considering the risks to the business. For instance, some scores take into account the proven ability of an individual to make on-time payments to utilities accounts.

Are there any other choices lenders have though? The short answer is: Not really, unless they want to invest in often-expensive technology used to determine risk. According to The Washington Post, if alternative scores aren't considered, to continue to serve a high volume of people, lenders would most likely have to use sophisticated programs that analyze more than straightforward histories.

The source said that many lenders still use traditional scores as their primary decision maker, but because the recession caused so many defaults, particularly on mortgages, this is no longer always a good idea. Analyzing non-traditional scores might provide a much more comprehensive view of a borrower in a cost-effective manner.