{"id":12529,"date":"2010-03-28T10:53:22","date_gmt":"2010-03-28T16:53:22","guid":{"rendered":"http:\/\/template.lenderama.com\/?p=624"},"modified":"2010-03-28T10:53:22","modified_gmt":"2010-03-28T16:53:22","slug":"alternate-sources-for-establishing-credit","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/alternate-sources-for-establishing-credit\/","title":{"rendered":"Alternate Sources For Establishing Credit"},"content":{"rendered":"

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This article will cover the alternate sources for establishing credit.<\/p>\n

While the basic Rule-of-Thumb for acceptable credit history<\/a> is a minimum of four trade lines documented on a credit report<\/a>, there are alternative methods of building a credit picture that an underwriter can use to make a decision for a loan approval<\/a>.<\/p>\n

For potential home buyers with little or no credit history, keeping records for 12 months of paying bills on time is essential for mortgage loan approval.<\/p>\n

In fact, loan officers will appreciate receiving proof that you have paid a variety of accounts regularly and on time. Even if you do not have a credit history, or your credit report isn’t as good as it could be, this may enable you to get a mortgage.<\/p>\n

The industry term for this is \u201cthin credit.\u201d<\/p>\n

Some loan types, namely FHA<\/a> and USDA<\/a>, will accept alternative credit sources in order to establish proof of financial responsibility.<\/p>\n

Alternative credit <\/a>is unreported to the bureaus, but will still be verified and can be instrumental in a home loan approval.<\/p>\n

Those with thin credit don\u2019t usually have bad credit, but have just not had an opportunity to build enough traditional credit, such as bank\/store credit cards, auto loans, etc.<\/p>\n

Alternative Sources For Building Credit:<\/strong><\/p>\n