In recent years there has been an ever-growing portion of the population from all over the United States who are starting to recognize how valuable alternative credit scores can be. This is especially true for those who have had past financial difficulties and have had no luck in maintaining good traditional credit scores. What people may not be aware of just yet, though, is what their rights really are with regards to using alternative credit scores. As luck would have it, however, just knowing a bit about how these credit scores work goes a long way toward helping people to get access to these credit scores and to ultimately improve their overall financial situations.
One of the most popular alternative credit scores is PRBC. It is important for consumers to know that over 9,000 companies around the United States accept these scores. The companies that accept PRBC range from mom-and-pop stores to big chains that have stores all over the country. It is a good thing, then, that this number includes companies that are, as of today, ready to accept these alternative credit scores. However, consumers who are looking to make credit-related choices in the near future, and who present those businesses with their PBRC scores, need to know that the score must be accepted according to the Equal Credit Opportunity Act.
What is involved in Alternative Credit Scores?
What are the legal rights associated with alternative credit scores really all about? Well, when it comes to PRBC scores, even though thousands of businesses do use them, the consumer will usually have to do the hard work of seeking these businesses out on their own. This means that if you plan on renting an apartment or turning on utilities in the near future, you will have to ask landlords, property management companies and utility providers (along with cell phone providers, cable companies, etc…) to report their standings when bills are paid. After the PRBC gets this data, it very well could help to improve the financial standing of the person making payments, because it could help to improve their alternative credit rating. As a matter of fact, the more of these types of accounts and payments a consumer can get attached to their PRBC account, the faster their credit scores will grow. And to get these benefits a consumer usually just has to contact any businesses they make payments to and ask that they get added to the list.
As of now, companies that are making credit decisions won’t just have access to potentially damaged/low traditional credit scores, but also a whole host of other information that shows how well people do when it comes to meeting their monthly payment obligations. This is all thanks to the implementation of alternative credit scores. People must keep in mind, however, that how different companies interpret this data is likely to vary. Again, though, under the federal law, companies cannot refuse to at least consider the information. People who have a good track record of making payments on time will be more likely to not only get new lines of credit, but to do so in a way that is as affordable as possible too.
If you have had previous credit problems, consider looking further into alternative credit scores. You may find that this method of credit scoring may help you to improve your financial situation faster than simply waiting on your traditional credit score to improve over time.