Cash App to Sell Proprietary Credit Scores
Cash App is moving to monetize its user data by selling its proprietary credit scores to power consumer lending. This signals a strategic shift for the fintech platform into the credit data business, intensifying competition around the ownership of financial identity. The move leverages Cash App's vast dataset on user transactions and financial behavior.
- The "Cash App Score" is built on an underwriting model that analyzes a user's financial activity within the app, including paycheck deposits, spending and saving habits, and repayment history for products like Cash App Borrow. This differs from traditional credit scores by using near real-time behavioral data. - Block, Cash App's parent company, reports this model has allowed for 38% more loan approvals through Cash App Borrow at the same loss rate compared to traditional underwriting methods. The company has provided access to nearly $200 billion in credit globally across its lending products, including Cash App Borrow, Afterpay, and Square Loans. - A pilot program launched in late 2025 gives some users visibility into their score, which updates weekly and shows how specific actions can impact their creditworthiness. A broader rollout of this feature is anticipated in 2026. - Block is actively seeking lending and distribution partners and has created a waitlist for companies interested in accessing the Cash App Score for their own underwriting. The company plans to begin working with these partners sometime in 2026 and will charge for access to the scores, though pricing has not been disclosed. - The target demographic for Cash App users often includes younger individuals and those who are less likely to use traditional banking services. Notably, over 70% of active Cash App Borrow customers have FICO scores below 580, yet they maintain a 97% repayment rate. - The move comes as the Consumer Financial Protection Bureau (CFPB) is proposing new regulations that would treat data brokers selling certain consumer information as "consumer reporting agencies" under the Fair Credit Reporting Act (FCRA). This would subject them to stricter requirements regarding data accuracy and consumer consent. - The integration of Afterpay, which Block acquired for $29 billion, is a key part of this strategy, allowing for the inclusion of buy now, pay later transaction data into the credit scoring model. This helps to attract and retain users within the Block ecosystem. - Block's internal analysis suggests the Cash App Score is more predictive than traditional models for other loan types, potentially approving 30% more auto loans and 28% more credit card applications at similar loss rates. This has prompted the company to explore partnerships for using the score in external product applications like auto loans and credit cards.
