Alternative credit refers to payment information associated with regular expenses such as phone, internet and utility bills. It also factors in subscriptions.
What goes into an alternative credit score?
Is alternative credit legit?
Alternative credit is recognized in the eyes of the law. According to the Equal Credit Opportunity Act (ECOA), if you provide a lender with proof of nontraditional payment history, they need to take it into consideration. Legally, a business can't turn you away by saying they only accept traditional credit reports.
In addition, about 8,500 businesses currently use PRBC's alternative credit score, with more signing up for the service every year. Even if you approach a company that doesn't use PRBC, you can provide them with your alternative credit report.
Aside from the additional data PRBC includes in its credit scores, they have a few similarities with traditional credit reports. For example, instead of using a scale of 350 to 850, PRBC uses a scale of 100 to 850. Any score over 750 says that you're a responsible financial citizen. So, while there's a big difference between how we calculate alternative credit and how other consumer credit agencies analyze traditional credit, nontraditional credit scores aren't difficult for businesses to understand.