Financial Literacy - Credit savvy
A cartoon family with safari hats on and a dog looking at a large rock with native symbols on it and several credit scores
Build a credit score from scratch

(One such alternative credit bureau is PRBC, recently acquired by Microbilt. Both companies cater to small and medium-sized businesses. PRBC compiles data provided by consumers while Microbilt receives trade line data directly from small businesses.)

Besides the Expansion score, there are other, similar, scores available to lenders, but so far none are as widely used as the conventional scoring models measuring traditional credit data.

"When you introduce any new technology or advancement for lenders, they spend a long time kicking the tires," says Watts.

"Some credit card issuers are using Expansion scores today, but the score hasn't really taken off with mortgage lenders," he says. The reason: Fannie Mae and Freddie Mac have had an enormous influence on the risk-management tools used by lenders and require specific scoring criteria before purchasing mortgages.

Until the new scoring models are widely accepted, consumers with little to no credit may be able to benefit from them in building their credit histories, but they won't likely be offered a mortgage on the strength of that score alone.

However, over time, as the Expansion scores prove their predictive abilities, lenders will be more likely to use them.


Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Cash Back Cards 17.94% --0.00 17.94%
Low Interest Cards 13.42% --0.00 13.42%

Credit Card Blog

Mitch Strohm

Gas credit cards

If you're looking for a way to keep your payout at the pump to a minimum, consider picking up a gas credit card.  ... Read more

Connect with us