Credit scores are these three digit snapshots — usually a number between 300 and 850 — that represent a borrower’s risk of default. They’re calculated by algorithms that use a borrower’s credit data, like the history of their credit payments, the amount of debt they owe, how long they’ve owned credit cards and more. Much of that data is collected and maintained by the three big credit bureaus, Equifax, Experian and TransUnion. It’s a system that scores millions of Americans. But critics say the system doesn’t serve consumers who prioritize paying for things in cash or don’t have enough credit accounts. In this episode, “Marketplace Tech” producer Daniel Shin explores how not having enough credit data to feed the algorithm can hurt a consumer’s chances of getting a loan or a mortgage.

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