How using APIs unlock an entire new world of alternative credit data

Discover how APIs transform lending by accessing alternative credit data, enhancing decision-making and expanding market reach.

Why is Alternative Credit Data Important?

When assessing creditworthiness, traditional lenders have always relied on a narrow range of metrics like credit scores and debt-to-income ratios. However, this limited perspective often excludes millions of creditworthy individuals, particularly those from financially underserved communities.

Alternative credit data offers a solution by providing insights into an applicant's financial behavior beyond traditional credit reports. This data includes information such as rental payments, utility bills, and even online payment histories, offering a more holistic view of an individual's creditworthiness.

How APIs Empower Access to Alternative Credit Data

APIs (Application Programming Interfaces) are key to unlocking the value of alternative credit data. They allow financial institutions to seamlessly connect with data providers and access real-time, verified information.

This integration empowers lenders with:

  • Expanded Data Sources: Access to a wider range of alternative data sources, including rental payments, bank account data, and even social media history. Learn more about Smile API's expanded data sources.

  • Real-Time Updates: Continuously updated data ensures that lenders make decisions based on the most recent financial information.

  • Improved Accuracy: API-based data is often user-authorized, eliminating the potential for errors or fraud.

Example: Smile API's Alternative Credit Data Solution

Smile API is a leading provider of alternative credit data solutions. Through its unified API, Smile API provides access to:

Smile API's real-time, consent-based approach empowers lenders with unmatched accuracy and depth, enabling them to:

  • Strengthen Creditworthiness Assessments: Leverage alternative data to make more informed lending decisions, even for individuals with thin credit files.

  • Expand Market Reach: Gain access to previously underserved markets, such as the underbanked and gig economy workers.

How to Use APIs to Access Alternative Credit Data

  1. Partner with an API Provider: Choose a reputable provider like Smile API, that offers access to a wide range of alternative data sources.

  2. Integrate the API: Connect your internal systems with the API provider's platform to automate data retrieval.

  3. Analyze and Leverage the Data: Utilize the alternative credit data to enhance your risk assessment models and improve decision-making.


Q: What are the benefits of using APIs for alternative credit data?
A: APIs provide expanded data sources, real-time updates, and improved accuracy.

Q: How can Smile API help me access alternative credit data?
A: Smile API offers a unified API that provides access to user-authorized employment income verification data.

Q: How can alternative credit data improve lending decisions?
A: Alternative data helps lenders make more informed decisions by providing a more holistic view of an applicant's creditworthiness.


By harnessing the power of APIs, financial institutions can unlock a new world of alternative credit data. This empowers them to make more informed lending decisions, expand market reach, and promote financial inclusion.

Visit Smile API's website to find out more about its alternative credit data solutions. To dive deeper into the latest industry insights, follow our blog. For a personalized demonstration, book a call with Smile API today.