Boost for Consumers With Low Credit Scores

By: Ken Harney: REALTOR® Magazine Online
National Credit Reporting Association (NCRA) member credit agencies specializing in home mortgage credit reports will input non-traditional credit history information to the PRBC (Pay Rent, Build Credit) national credit bureau starting in early October.

The partnership is designed to provide mortgage lenders, brokers, and other creditors with a "full picture" of the payment history of a consumer, which would include rent, electric and gas charges, telephone bills, small business loans, payday loans, alimony, and child support.

Mortgage lenders will be able to order the bill-paying scores (BPSs) of consumers, which would help them to adjust their rate quotes and fees accordingly.

"More than 70 million Americans make rent, mortgage, and other recurring bill payments that are not reported to traditional credit bureaus" and those consumers "often have lower credit scores than they should and pay more for housing, credit, and insurance than they deserve," says NCRA Executive Director Terry Clemens.