How Pcbr can help Build your Credit Score

If you don’t like to use credit and feel pressurised to do so in order to build up your Fico score, using the services of PRBC could be the solution to establishing a credit history by other means than borrowing. Likewise if you have a bad credit score and use the services of PRBC you have a way to improve your credit score without resorting to sub prime borrowing. Many people may have slipped into debt on credit cards yet manage to pay other bills such as rent and utilities on time. By registering these payments with PRBC a credit history can be established which isn’t based on Fico scoring.

If you have not heard of PRBC it is the alternative credit bureau Payment Reporting Build Credit. It is an established bureau which complies with the Fair Credit Reporting Act, but is not part of the trio of Experian, Equifax and TransUnion. It is particularly relevant for those with no or bad credit scores to use when thinking ahead about obtaining a mortgage. A report from PRBC can be used as a non traditional mortgage credit report, and increase your likelihood of obtaining a mortgage and a better interest rate.

It is a simple concept in that you are able to register all payments made for rent, gas, electric, water, insurance, day care, child support, internet, cable, telephone, as well as loans repaid to family or friends. These types of payments are generally only reported to the standard three bureaus when they are in default, but positive payments go unreported. You can record a previous history of payments or establish a new history of payments by making future payments through partner bill paying services. Currently the two bill paying services used by PRBC are Billeo and Account Now.

There is no charge to establish an account with PRBC, but they do charge a fee if they need to verify your previous payments. They will only do this when six consecutive previous payments are recorded. Rent paid verifications cost $20 and all other bills $15. There is no charge to consult your credit file which you can do as often as you like.

PRBC makes its money by selling your report on to interested lenders, but only with your permission. Typically it will be used by employers, landlords, insurance companies and mortgage lenders. If you apply for credit you can ask a lender to pull the PRBC report but they are not obliged to and some will not, due to the additional cost. The partner bill services will charge you a monthly fee for their services but it could prove worthwhile if it helps you to secure a mortgage at a lower interest rate. A positive electronic record of payments made over 12 months will help you to qualify for a mortgage, whilst your chances improve even more after 36 consecutive months.

If your aim is to take out a mortgage the service offered by PRBC can be very beneficial to those with bad credit or no credit. It gives those who do not want to get involved with the temptations of credit cards another option of establishing a credit score. However the service may not be so beneficial if used to obtain retail credit as PRBC is new to offering a FICO expansion score service and it will be up to the three main bureaus if they care to evaluate a PRBC report. In the long term PRBC could well become a major credit bureau with its system of evaluting non traditional credit scores.