Building a Non-Traditional Credit Report
If you need credit, but don’t have time to build credit using traditional tools, some banks and credit unions will consider a non-traditional credit report.
The idea behind a non-traditional credit report is to demonstrate that you reliably pay your bills as agreed. To do this, you will need to show long-term, consistent payments to:
- Utility companies
- Landlords/property owners -- for rent
- Telecommunications providers—cell phone, Internet, and television service
- Automobile, life, or renter’s insurance companies
- Union -- dues
- Childcare providers
- Schools -- tuition
- Savings account that shows regular deposits and growing balance over time
- Medical providers
- Any other individual or business you pay on a regular basis (including friends/family for personal loans)
In most cases, you will need to demonstrate at least a 12-month history with more than three sources. You will also need to provide evidence of regular payments, including:
- Receipts, including money order receipts
- Copies of cancelled checks
- Invoices noting “paid in full”
- Savings account statements
Some people also include letters of reference from landlords or others with whom they do business.