JLow asked:


I just found out about a credit reporting agency that isn’t one of the big three but is geared for the consumer without credit. I am interested in using it to build my credit, but don’t want to if it won’t help me get approved eventually. Has anyone used this agency and if so, was it helpful in getting you approved for a mortgage?

SONNY

3 Responses to “Has anyone gotten credit using PRBC?”

1. CatDad on October 13th, 2009 3:17 pm

   DORIAN

   Don’t waste your time if this service involves giving them money….The big 3 credit reporting agencies are the ones that matter…

2. Reena on October 16th, 2009 7:42 am

   DAREN

   Novel thought process…. build credit by recording alternative sources like your rent payment, etc. etc.

   Only one problem…. is a future lender going to use information provided by PRBC? Will you be restricted to lenders that agree to use PRBC to check your credit? How many lenders and credit card companies are participating?

   Those are the questions you need an answer to.

3. C.Wright on October 18th, 2009 6:21 pm

   EMERSON

   Mortgage brokers have been using PRBC on behalf of their applicants with fewer than 4 active trade lines in the ‘big 3′ bureaus, or with no FICO scores to qualify them for Fannie Mae, Freddie Mac, and FHA mortgages under these agencies’ long-standing underwriting guidelines for the use of regular bill payment histories. This is a link to FHA Mortgagee Letter 2008-11 reiterating/updating their policy on the subject of Nontraditional Credit Verification and Evaluation:

   According to federal law, the Equal Credit Opportunity Act, Section 202.6, to be precise, a creditor MUST consider any accounts that an applicant is responsible for that tend to indicate the applicant’s creditworthiness, upon the applicant’s request- whether or not these accounts are reported to the ‘big 3′ bureaus. This means that a lender must look at an applicant’s paper-based proof, if they have any such as paid utility and phone bills, insurance premium payments, cancelled rent checks, etc.. Even though creditors are required to do so under federal law, this process is cumbersome because they must verify that the applicant did not Photoshop their paper-based proof and then the lender must total up how many accounts the applicant has, what type of accounts they are, how long they have been open, if there were ever any late payments, and if so how many and when. Then the lender must determine what their findings indicate about the applicant’s willingness and ability to pay on time. Or a creditor can pull an applicant’s PRBC Report with FICO Expansion Score, if the applicant has one, just as they would pull a credit report and score from one of the ‘big 3′ bureaus. The FICO Expansion Score has the same 300-850 score range as the classic FICO Score and similar default odds - meaning the repayment performance of an individual with a FICO Expansion Score of 680 will be similar to an individual with a 680 classic FICO Score - assuming other factors being equal such as length of employment, debt service to income ratio, loan to value ratio, etc..

   Credit unions have also used PRBC to qualify auto loan applicants with little or no traditional credit history. This is a link to a story about an example that aired on National Public Radio Marketplace:

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