Upstart Holdings (NASDAQ: UPST) may not be a household name right now -- but give it time. Sooner or later (and probably sooner than later) there's a good chance you or someone in your household will become familiar with the young company. That's because it offers a much-needed solution to a long-standing problem that the financial industry had largely given up on solving.
In simplest terms, Upstart offers lenders a more effective method for judging a prospective borrower's creditworthiness. That task that has long been co-handled by the big three credit bureaus -- TransUnion (NYSE: TRU) , Equifax (NYSE: EFX) , and Experian (OTC: EXPG.Y) -- along with Fair Isaac (NYSE: FICO) , which considers the credit bureaus' data to come up with the FICO scores ultimately used by banks and other lenders when deciding whether or not to extend loans, and on what terms. However, the world has changed since FICO scores became the lending industry standard back in 1989, while the credit rating business hasn't.
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For further details see:
Here's What You Need to Know About Upstart in 2022