It is often surprising for individuals to learn that having no credit history can be just as much of a burden as having a poor credit history. Many lenders are reluctant to extend lines of credit to those who have not yet officially proven their credit trustworthiness. For these individuals, a credit report lawyer near Fairfax may recommend reviewing your credit report to make sure you do not have an inaccurate credit report.
What Is a Non-Traditional Credit Report?
Non-traditional credit scoring methods were developed by credit bureaus and credit scoring companies to enable financially trustworthy consumers to access lines of credit. The most commonly used non-traditional credit report is called the FICO Expansion Score, which was developed by the Fair Isaac Corporation. As with conventional FICO credit scores, the Expansion score ranges from 300 to 850, with the higher numbers being the most desirable.
Can Anyone Use Non-Traditional Credit Reports?
Unfortunately, non-traditional credit reports are not available for every consumer. They typically are accessed on consumers who lack a traditional FICO score. For example, if you have required the services of a credit report lawyer to submit a credit report dispute regarding erroneous information, you cannot use a non-traditional credit report to counteract your delinquent credit accounts. However, you can improve your credit score by working with your credit report attorney to correct the erroneous information on your reports.
Which Financial Information Is Included?
Usually, a person’s FICO score reflects payment history, percentage of credit utilized, and other factors from sources such as credit cards and installment loans. A non-traditional credit report relies on other financial information, such as information from your landlord if you are a renter or the utility company if utilities are not included with your rent payment. A track record of payments made to a cable company, home phone service, or even a childcare service could help you obtain lines of credit. School tuition, furniture, and appliance rental services, and retail store accounts may serve as the basis for a non-traditional credit report. Non-traditional credit reports may also be inaccurate, so consumers should obtain copies of those credit reports if they are denied credit or the ability to cash a check because of the inaccurate non-traditional credit report.