Alternative credit scores being used to to evaluate
the credit-worthiness of potential borrowers

A recent article discussed in detail how many lenders are now looking beyond what some consider to be the “traditional” credit score in order to determine the credit-worthiness of a posssible borrower. These lenders are instead looking at alternative credit scoring methods to evaluate the risk involved with certain individuals.

Some lenders are now looking beyond total debt amounts and payment histories, and are instead looking at other factors, such as rent and utility payments.

Credit scorers find creative new ways to judge you

Whether or not this is good news depends on your specific financial situation as well as the details of your credit history (or lack thereof). One thing that is certain, though, is that some lenders are looking beyond the traditional methods when determining the risk involved in extending credit to potential borrowers.

One time each year, consumers can request a free copy of their credit report. Read Can I get a free credit report? for more information about this guaranteed right. There are also a number of companies that offer credit score services and a variety of credit monitoring services.

Staying on top of your credit can really pay off when the time comes to apply for your next loan or financial product.

Posted in News, Credit Cards, Loans, Miscellaneous, Personal Finance

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This entry was posted on Thursday, March 13th, 2008 at 7:06 am and is filed under News, Credit Cards, Loans, Miscellaneous, Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.