No Credit? Establish New Credit with PRBC

"I don't have bad credit, I just don't have any credit." How does someone establish credit? Conventional wisdom says, "Borrow some money and pay it back."

People are putting themselves into debt to establish a credit score that did not recognize the payments that they were already making. Pay Rent, Build Credit, Inc. (PRBC) is a web-based self-help service that enables consumers and small business owners to build their credit scores through timely rent, mortgage, and other recurring bill payments.

"The PRBC Data Network enables users to build an historical credit file using multiple payment accounts such as rent, mortgage, mobile home, utilities, student loan, auto, insurance, phone, self-storage, etc... Users can build an accurate credit file with rent and other bill payments in real time when made online, by phone, credit or debit card, ACH (automated clearing house), or by other means that can send a date-stamped electronic "receipt" to PRBC.

"PRBC users can build historical credit files based on up to three years of prior payment records that can be manually verified by independent sources, like banks, REALTORS®, accountants, and credit counselors. But most importantly, for future payments, the PRBC Data Network enables consumers and small business owners to build an accurate credit file automatically.

"The results for consumers can be staggering. Without going into debt, a renter can prove they are ready, willing, and able to handle a big financial obligation, like repaying a mortgage. The PRBC Data Network will provide a greater number of loan applicants with an equal opportunity to access prime rate mortgages, auto loans, and other financial products...This is a significant development for borrowers and lenders alike because until now, credit reporting and scoring technologies have not been able to account for the timeliness of most rental, sub-prime loan, utilities, and other household or businessrelated bill payments as a measure of credit worthiness.

"The PRBC Data Network will accept...rental and other bill payment input from landlords, mortgage lenders, and other creditors who want to use the PRBC Data Network to report timely, as well as late payments, to reward their customers who pay on time, not just penalizing those who are late."

(Frances Flynn Thorsen is author of HUD Homes for Sale - A Complete Buyer's Guide and HUD Homes for Sale - Sales and Marketing Guide for Real Estate Agents.)