well not as much...

For years the FICO score (a credit score developed by Fair Isaac Corporation) has been highly responsible for exemplifying your creditworthiness. This score basically summed up that if a person had a higher FICO - then they were less of a financial risk to lenders. And a person with a lower score should be strayed away from and virtually banished completely. Well as the lending industry can now see, this philosophy is not all that cut & dry. People with FICO scores even in the high 700s+ have been defaulting on loans left and right despite their perfect scores. Now many lenders realize that they must look into more alternative methods to gauge a person’s creditworthiness.

What about the person who doesn’t have credit at all? What about that person that pays their routine bills like phone, utility, rent and other on-time each & every month like clockwork?... What about them?

Shouldn’t that count for something???

Well fortunately the Growing Answer is → Yes It Should! Many Major Lenders are now already turning to non-traditional credit reporting agencies for alternative insight into a borrower’s (or potential borrower’s) background. They are even looking into court documents to gain insight into ones character and creditworthiness.

This is very positive news for everyone! Because what this means is that it will opens doors not only to people with a Good to Perfect Credit – but also to people with Average Credit, Bad Credit or even No Credit at all to gain broader consideration when applying for loans.

What I’d recommend is that you keep track of all of your monthly payments for Any and Everything! (utilities, phone, cell phone, any other re-occurring monthly bills) and present or at least mention them to lenders when applying for loans, even if they don’t request it. This is a true Guerrilla Tactic i.e. Using ALL that you have to get what you want! Presenting this alternative financial information definitely can’t hurt.  And It just might give your loan request the extra boost it needs for approval! 

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Time Magazine:

Lenders Look Beyond Credit Scores to Gauge Who's a Risk

“Lenders are rethinking their reliance on credit scores. In the past year, an increasing number of banks have begun turning to court documents, phone bills and other nontraditional ways of measuring creditworthiness to bolster their lending decisions...