Pay Rent, Build Credit has received a U.S. Patent for an alternative credit rating system that uses commonly recurring bill payments for individuals and small businesses to establish a credit file, credit report and credit score.
The alternative method can be used by lenders to measure credit risk for borrowers without mortgages or auto loans or other mainstream credit gauges and will use rent, private mortgages, non-prime auto loans, utilities, cable, insurance premiums, pay day advances and rental furniture and appliances, instead.
Lenders will be able to purchase a PRBC Report either by itself, or merged with a traditional report issued by Equifax, TransUnion or Experian.
The alternative credit report is targeted for the burgeoning number of non-traditional consumers who frequent payday lenders, check-cashing outlets and other high-cost financial service providers.
