News & Resources

Alternative information compiled in credit reports

Feb 23, 2013 Sean Albert

When many consumers think about credit reports, they know that they can contact one of the three main bureaus - Equifax, TransUnion and Experian - to see their credit history for free once a year. These entities take various things like credit card payments and student loan history into account to create a score lenders and credit card companies use when deciding to extend a line of credit.

However, Bloomberg Businessweek reported that there are a number of alternative companies that look at a lot of other data. For example, some alternative reporting agencies consider if a consumer has paid rent on time or even takes prescription drugs, the source noted. These businesses can sell the data to insurers, employers or a number of other interested parties.

One thing that these companies might start looking into with more frequency is an individual's Payment Reporting Builds Credit (PRBC) score. Both consumers and businesses should be aware of this trend, as people can contact a local bureau to compile this score by providing a history of steady payments for various utilities accounts. This is particularly beneficial for those who have otherwise dismal scores.