What Are 3 Types of Alternative Credit?
Did you know that almost 55% of Black Americans claim that they either have a low credit score or no credit at all?
No matter what your credit score is, there's always the possibility that it could be higher than you know. For the most accurate score, it's important for Millennials and others to take all alternative credit lines into consideration. Without those, you may never have a good credit score on paper, even though you do elsewhere.
Are you wondering what you need to know? Keep reading to learn all about 3 types of alternative credit.
1. Rent and Utilities
When it comes to alternative lines of credit, it's important to take rent and utilities into consideration. However, traditional credit scores don't take this information into account.
Being able to pay your rent on time is a financial accomplishment that should be noted and rewarded, especially when so many people are struggling to cover their rent. The same is true for keeping the lights on and the water running. With these credit lines, the bigger picture will begin to take shape.
2. Private Property and Asset Value
Other lines of credit that shouldn't be ignored include your private property and general assets. Your home could be worth a lot of money, but loan providers won't know if all they look at is your traditional credit score.
They also won't get the full picture if they don't take the value of your assets into consideration. If you own big-ticket items, such as a large boat, an expensive car, or a rare collection of jewelry, then you owe it to yourself to get a true credit score.
3. Financial Management Data
Another way you can expand your credit line is by putting all of your financial management information into the equation. If you've had a bank account open for 5 years or even a decade, then that should be counted in your favor.
Do you deposit money more than you withdraw it? Responsible habits like this are important to figure into your score. A careful person often has plenty of money in their savings account. This is yet another piece of data that traditional credit scores don't factor into their calculations.
The only way to break free of an unfair system is by ensuring your credit score is as accurate as possible.
Are You Ready to Use Alternative Credit?
Now that you've learned all about 3 types of alternative credit, you can make sure that your true score is no longer invisible. That way, you can get that loan you need for opening your business, for instance. When you build up a great financial history, the possibilities are endless.
Connect is dedicated to proving the reliability and overall creditworthiness of our clients. By joining the alternative credit movement, you can invest in the success of your future.
If you have any questions about our highly-rated services, then please feel free to check out the answers to our frequently asked questions. You can also contact us to get more specific information about your credit or related topics.