These scores factor in people's monthly bills, specifically their habits regarding utility, subscription, internet and phone payments. However, there are a few industries which could make especially good use of nontraditional credit scores:
It's not uncommon for auto dealers to reference credit scores that place heavy emphasis on past car loan payments. Still, this formula isn't perfect, and may paint a misleading picture of a person's ability to make lease payments on time and in full.
Alternative credit scores provide more context, giving salespeople an idea of which vehicles customers can afford to purchase.
Whether by providing credit to purchase a computer or setting up rent-to-own deals for TVs, electronics businesses can leverage alternative credit reports to reduce the risk of customers defaulting on payments.
Nontraditional scores help these retailers avoid risky customers and connect with fiscally responsible, but underbanked individuals.
Many lower-to-middle income houses may not be able to pay for couches, mattresses and other furniture up front.
Furniture sellers can direct these customers to PRBC for a free alternative credit score, showing them whether patrons will qualify for a line of credit on love seats, sofas and more.
Businesses participating in the healthcare and medical industry are prohibited from using alternative credit data. This is largely due to the intense regulations the sector must adhere to. In addition, home-based businesses and employment-screening companies do not use alternative credit scores for similar reasons. While mortgage lenders and banks are likely to turn to alternative credit in the near future, it's not a common practice yet.