News & Resources

Utilities reporting among little-known credit boosters

Feb 24, 2013 Sean Albert

Over the past few years, many people have created blemishes on their traditional credit reports. From letting a student loan default to not having the funds to pay off a charge card each month, missteps are not uncommon. But many consumers know that instead of buckling down and trying to repair their histories for a number of years, there are steps that can be taken immediately.

For example, according to Money Talks News, asking utilities companies to report a history of steady payments is one of the most lucrative, yet unknown, ways of building credit. Wireless providers, cable companies, telephone businesses and other utilities operations are often good sources to go to for this, the news source reported.

The provider said a score of this type, often called a Payment Reporting Builds Credit (PRBC) score, can be very helpful in securing a loan.

This strategy can also be lucrative for the lenders themselves. After the housing market and overall economy took a dive a few years ago, many consumers, particularly those looking for loans, may not have spot-free credit histories, so abiding by stringent loan requirements may be an outdated practice. By asking potential borrowers for alternative scores, like a PRBC report, these companies may open themselves up to a larger target market.