Do you carry a positive cash balance in your bank account every month? Do you pay your electric bill on time every month?
Some lenders are using alternative methods to increase an individual’s credit score. Based on the rise of the amount of available data in the last decade, companies such as general motors and FICO are using alternative methods to boost consumer credit.
Why would they do this? At the end of the day, banks make money by generating loans so ultimately it benefits the bank. However, it could positively impact your credit score.
Credit scores such as ULTRAFICO examine items such as a history of a positive cash balance, evidence of cash on hand, and length of account balance to increase credit scores. You may have also seen advertisements for Experian Credit Boost which promises to boost your credit score based on bills you already pay such as electric and phone bills. The Company has already boosted scores by over 11 million points since its inception this year.
If you’re looking for a quick boost in credit, this is actually worth a shot. Especially if you’re planning on making a responsible purchase or applying for a credit card which you intend to pay off every month. For a look at some of the better rewards cards, click here.
Critics, however, suggest that lending companies are using big data as a way to extend credit to unqualified borrowers in an effort to make money. Many suggest that the lending practices is similar to that which caused a recession in 2008.
Regardless of your perspective on the matter, feel free to boost your credit using the links above. Just be aware that credit is a double edged sword. You can use it to invest in real estate and make big purchases but too much can get you into trouble.$