Non Traditional Credit Score Sources
Fair Isaac estimates that more than 50 million Americans have either no credit or not enough credit information in their files to trigger the credit bureaus to create a credit history for them. This creates a huge unexploited market for mortgage lenders who have been experimenting with non-traditional ways ways to sell credit products to those who are not eligible according to the FICO guidelines.
Some of these non-traditional credit score sources include:
• Assessing whether you pay rent or utilities on time
• How well you pay back payday lenders
• How often you bounce checks (monitored through check monitoring companies.)
• How well you paid off a rent to own payment program.
This type of nontraditional data is the wave of the future when it comes to providing more eligibility for credit to people who are underserved in the industry. If this is the wave of the future when it comes to assessing your credit you can see how important it might be to maintain good spending habit and pay your bills on time!