How to Improve Your Loan Chances With an Alternative Credit Score
What if there was a way to improve your credit score that you had never tried?
If you suffer from low or even invisible credit, then a traditional credit score may be holding you back. But it's possible to improve your chances of getting a loan with an alternative credit score.
What is an alternative credit score, and why is it important? Keep reading to discover the answers!
What Is An Alternative Credit Score?
Our guide will help you discover whether these alternative scores are right for you and your lifestyle. But first, we need to answer the big question: what is an alternative credit score?
With traditional credit scores, lenders mostly look at the borrowing history of the applicant. But if you don't have much of borrowing history, or your credit is suffering from a youthful mistake, it can be difficult to get loans approved.
With alternative credit scores, lenders look at different information. This includes your current financial data as well as your history of rental payments, utility payments, and other bill payments.
This information can help prove that you have a healthy bank account and a proven history of paying your bills. With this proof, it's easy to get the loans you need.
Big Changes Over Short Periods
At this point, you might be asking if an alternative credit score would really work for you. After all, don't traditional credit scores adequately reflect your financial status?
The answer is both "yes" and "no." It's true that the info in a traditional credit score paints a thorough picture of a potential borrower. But credit score info is often a few years out of date, and a single mistake in your past can really put a stain on your record.
But it's possible for big changes to happen in a short period of time. Maybe you landed a new job and you're making more money. Or maybe your relationship with money and payments has changed in recent years. In that case, an alternative credit score may more accurately reflect your current situation.
Other Benefits of Alternative Credit Scores
Still on the fence about pursuing an alternative credit score? In that case, you need to know about a few more of the potential benefits.
First of all, you may be able to get better loans and interest rates. Instead of settling for whatever loan you can get, the fuller info in an alternative score can help you secure better interest rates from the lender.
Second of all, more and more lenders are embracing alternative scores. It's easy to automate this process, and it can ultimately help the lender reduce loan origination costs.
Finally, alternative credit scores are becoming more mainstream throughout the country and even around the world. By having an alternative credit report on top of your traditional credit score, you open up more opportunities for more competitive loans.
Your Next Move
Now you know the benefits of having an alternative credit score. But do you know where you can get an alternative score today?
Connect makes it easy to get an alternative credit score at the click of a button. If you're ready for your own report, then come get started today!