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Widespread adoption of alternative credit might be coming

Feb 21, 2013 Sean Albert

When individuals have a poor history of paying back loans or credit cards or simply haven't yet built up a solid record of repayment, qualifying for lines of credit can be exceedingly tough, if not impossible. Many people think that this is something that cannot be avoided and settle for low borrowing thresholds and staggering interest rates until they can find relief.

However, a number of consumers are unaware that there is something else they can do to boost their credit scores and open themselves up to funds. Relying on a Payment Reporting Builds Credit (PRBC) score can be very beneficial. Individuals can consult with consumer credit bureaus to give workers access to utilities and other accounts that can show a steady history of repayment to build a new score.

According to a New York Times blog, lawmakers are looking into making the acceptance of a PRBC score more widespread. The source said that now, many utilities companies don't report to bureaus, usually only doing so if accounts are delinquent. As such, lawmakers like United States Representative Jim Renacci want regular reporting to catch on and are drafting legislation that would make this mandatory.

It may behoove utilities companies, lenders and other businesses involved in developing credit to make the move to adopt PRBC scores, so they have a leg up on competitors should measures pass in the future.