Abstract
Credit evaluation has been an important part in personal consumption industry and developed since 1960s. Alternative data provides a new view of data mining and gets to be one of the research hotspots in this field. This paper will summarize the application situation and development status of alternative data in personal consumption credit, according to the specific usage in the researches. Alternative data has been more and more widely used in personal credit industry. It has the advantage of improving predictivity and decreasing discrimination. However, meanwhile, because of the incompleteness of relative law and the existence of Lucas Critique, the legality of the employment of alternative data and the reliability of the results are to be proven. Many researches based on machine learning or other AI algorithm couldnt provide enough power of explanatory. This paper will give financial candidates a distinct view of the pros and cons in the research about applications of alternative data in personal consumption credit and leads to an increasing accuracy in credit assessment.
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