ValidiFI Q3 Report Finds More Than 30% of "Fair" Credit Consumers Flagged as High Risk by Alternative Scoring

New Analysis Shows How Layering Real-Time Bank Data with Traditional Scores Uncovers Hidden Risks and Opportunities

ALPHARETTA, Ga., Dec. 10, 2025 /PRNewswire/ -- ValidiFI, Inc., the leading alternative data provider, today released its Q3 2025 Bank Account and Payment Intelligence Report, "Rethinking Credit Scoring in the Age of Shifting Financial Behaviors," which reveals significant discrepancies between traditional credit scores and actual consumer risk profiles.

As economic pressures mount, with layoffs reaching a 22-year high, savings declining 10%, and nearly 70% of consumers living paycheck to paycheck, the report argues that static credit scores fail to capture fast-changing financial realities. Average credit scores fell two points to 715 since 2024, while student loan delinquencies (90+ days) now exceed 10%.

"Static scores can't keep pace with today's real-time financial conditions," said John Gordon, CEO of ValidiFI. "Lenders need agile tools that reflect current behaviors and changing signals, not just past payment history. By layering bank account and payment data on top of traditional credit scores, organizations can uncover risks and opportunities that conventional scoring misses."

Key findings from the report include:

• More than 30% of consumers in the traditional "Fair" credit score range (581-670) are flagged as high risk by ValidiFI's vCredit score
• vCredit identified a low-risk segment within the 581-670 range with a First Payment Default (FPD) rate of 9.9%, comparable to the 9.8% FPD rate for high-risk borrowers in the 741-800 "Very Good" range
• Consumers previously declined based on traditional scores alone showed strong real-time banking behaviors, including clean ACH histories, stable identity markers, and successful loan repayment patterns
• A 36.5% increase in consumers with credit inquiries in the last 30 days occurred between March 2025 and September 2025
• Consumers with 9+ inquiries in 30 days increased more than 100% year-over-year from September 2024 to September 2025
• Consumers holding 5+ bank accounts rose 6% year-over-year and 26% from March to September 2025

The report demonstrates that risk can vary widely within the same traditional credit score range. Notably, individuals identified as "Low Risk" by vCredit in the 581-670 band demonstrated stronger performance than the overall group in that segment, challenging conventional views of mid-tier credit scores. Traditional scoring would classify these consumers as subprime, yet vCredit's advanced segmentation uncovers a subset whose financial behavior aligns closer to prime borrowers. This finding highlights the limitations of legacy scoring and the value of layering alternative data into modern risk assessments.

ValidiFI's vCredit score evaluates real-time bank account activity and transaction history, payment behaviors, NSF occurrences, inquiry patterns, and identity stability. This approach surfaces creditworthy consumers overlooked by traditional models while flagging hidden risks in higher-scoring applicants.

The report further reveals that even consumers with 800+ credit scores possessed multiple emails and business phone numbers tied to a single SSN, potentially signaling shared credentials or synthetic identity risk. In contrast, some mid-score applicants with thin credit files demonstrated stable identity markers through consistent email and business number associations.

To download the Q3 2025 Bank Account and Payment Intelligence Report and receive future intelligence reports, visit Rethinking Credit Scoring in the Age of Shifting Financial Behaviors.

About ValidiFI
ValidiFI is the leading provider of predictive bank account and payment intelligence. ValidiFI empowers organizations and financial institutions with actionable insights to help validate bank accounts, detect fraud, and assess credit risk. By analyzing the intricate connections between bank accounts, consumers, and payment performance, ValidiFI offers a more comprehensive view. ValidiFI serves as a trusted partner, unlocking the power of predictive bank account and payment intelligence through credentialed and non-credentialed solutions, enabling more confident transactions. For more information, visit www.validifi.com.

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SOURCE ValidiFI