Here’s another article about the Anthem scoring system, an alternative to the FICO score.
Rent-to-own payment histories have long been a tremendous help for working Americans trying to establish credit and achieve home loans.
Rent-to-own payments, though, have never been a factor in traditional credit scoring systems.
The inadequacy of the current credit scoring system penalizes an estimated 50 million Americans.
Consequently, brokers and lenders around the country are beginning to use alternative scoring systems, including Anthem.
Anthem is a system of nontraditional credit reports that supplements traditional FICO reports.
Anthem, developed by First American CredCo, the credit data subsidiary of First American Corp., factors in non-traditional scoring reports from national bureaus then mixes in information collected by CredCo that includes regular child-care, telephone, utility and rent payments in addition to personal credit data from businesses that do not report to the bureaus—such as rent-to-own companies.
A recent survey of the 14,000-member National Association of Hispanic Real Estate Professionals showed that nearly 80 percent of real estate brokers are forced to turn away two out of three prospects because they cannot qualify under the traditional credit score system.
Frances Martinez Myers, chairperson of the National Association for Hispanic Real Estate Professionals, estimates that if lenders used newer and more innovative credit scoring systems that factored in rent, utilities and other types of payments such as rent-to-own that are not reported to the national credit bureaus, “an additional $200 billion in new home loans could be extended to Latino purchasers.”
Rent-to-own dealers have been helping consumers establish or re-establish credit for years at a local basis.
The recent inclusion into a national scoring system such as CredCo confirms rent-to-own’s value in the marketplace and the economy especially in the ability to help millions of Americans achieve their dream of home ownership.
| New scoring systems recognize benefit of rent-to-own in helping … RTO Headquarters, TX - … 80 percent of real estate brokers are forced to turn away two out of three prospects because they cannot qualify under the traditional credit score system. … |
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