Credit Scores Increasingly Including Rent & Utilities

How lenders incorporate alternative data in your credit score

Credit scores are changing. Increasingly, alternative data is also being included in credit scores. Is it good or bad? How merchant services providers like eMerchantBroker can help you with easy approval?

Getting Approved for Merchant Services: Credit Scores

Lenders usually pay attention to the borrower’s payment history, credit utilization rate, how long he/she has been doing business, credit account types, as well as recent credit account openings. In recent years, gradually, credit scores have started incorporating alternative data. What is meant by alternative data?

Well, this has to do with e.g., rent or utility payments. You can already find lots of banks basing their lending decisions due to this new type of credit score calculation. 

Thankfully, there are merchant services providers like eMerchantBroker that approve business owners not paying attention to the type of business they’re running or the personal credit rating they have. 

This type of merchant services provider is operating based on the best business practice in the industry. So, make sure to apply to a provider that’s ready to work with businesses regardless of their poor credit, no credit history, bankruptcy, or unresolved tax liens. Turn to a provider that takes into account the business performance rather than personal credit, time in business or financials.

Is Alternative Data in Credit Reporting Good or Bad?

Alternative credit rating data includes:

  • Utility bill payments
  • Bank account details
  • Telecom payments
  • Rental and lease payments

According to one of the attorneys at the National Consumer Law Center, borrowers can enjoy more opportunities thanks to alternative data incorporated in credit scores, especially those who don’t have a credit history. 

On the other hand, borrowers can also face challenges. In what cases? E.g., COVID-19. The COVID-19-related situation has caused so many people to fall behind on housing payments, which, in this case, creates problems for them. So, the best way out is to shop around and see which lender offers the conditions you need.

Credit Scores Increasingly Incorporating Alternative Data

With more lenders paying attention to alternative data when approving merchants, you should find a reputable merchant services provider that guarantees the best services with the best conditions for your needs. 

Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.