Build credit score with payday loans
December 8, 2008 | industry, personal finance | Comments (0)This program has been underway for a couple of years, but it’s nice to see the Consumerist mention it:
PRBC, formerly named “Pay Rent, Build Credit,” is an Annapolis, MD startup that let’s people self-report information about their credit. Through PRBC, you can record your rent payments, loan payments, and even payday loan payments. It’s an alternative for those who have very little credit history (“thin credit file”) such as new immigrants or recent divorcees. Since the principal aim of a credit score is to determine the credit-worthiness of a borrower, i.e. how well they can pay back loans, a long track record of on-time rent payments would be helpful to know (currently not tracked by standard FICO). PRBC would be of limited value if it only stood on its own, fortunately in November of 2007, Fair Isaac announced that the PRBC credit report would be included in the FICO Expansion Score.
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