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This paper examines the effect of digital credit—specifically BigTech credit and fintech credit—on income inequality across 42 countries from 2013 to 2019. We investigate both the direct impact of digital credit on inequality and the mediating role of financial inclusion. We propose a multi-equation model based on isometric log-ratio transformations of income shares, to estimate the shift in the entire Lorenz curve, while properly accounting for the often-ignored constraints inherent to the analysis of compositional data in the literature on inequality. The findings suggest that alternative digital credit generally reduces inequality by benefiting the poor and middle-income groups while reducing the top income share. Interaction results indicate that the inequality-reducing effect of BigTech and digital credit strengthens with stronger institutional quality, more financial openness, and economic development. In contrast, fintech credit intensifies inequality across institutional, openness, and development dimensions.