Alternate Sources For Establishing Credit
While the basic Rule-of-Thumb for acceptable credit history is a minimum of four trade lines documented on a credit report, there are alternative methods of building a credit picture that an underwriter can use to make a decision for a loan approval.
For potential home buyers with little or no credit history, keeping records for 12 months of paying bills on time is essential for mortgage loan approval. In fact, loan officers will appreciate receiving proof that you have paid a variety of accounts regularly and on time. Even if you do not have a credit history, or your credit report isn’t as good as it could be, this may enable you to get a mortgage.
The industry term for this is “thin credit.”
Some loan types, namely FHA and USDA, will accept alternative credit sources in order to establish proof of financial responsibility.
Alternative credit is unreported to the bureaus, but will still be verified and can be instrumental in a home loan approval.
Those with thin credit don’t usually have bad credit, but have just not had an opportunity to build enough traditional credit, such as bank/store credit cards, auto loans, etc.
Alternative Sources for Building Credit:
- Rental History – Canceled checks and letter from property management company
- Medical Bills – 12 months of statements from medical billing company showing paid as agreed
- Utilities – power, gas, water, cable, cell phone
- Auto Insurance
- Health / Life Insurance – as long as it’s not auto-deducted from pay check
_________________________________
Related Articles:
- Understanding Credit
- Top Credit Do’s and Don’ts To Bear In Mind When Getting A Mortgage Approval
- Is There A Rule-Of-Thumb Regarding The Number Of Credit Lines To Have Open?
- Ten Things You Can Do To Protect Your Identity
Leave a Reply
The Pat Hiban Real Estate Group
Keller Williams Crossroads Realty
8840 Columbia 100 Parkway St. 110
Columbia, MD 21045
410-964-2400 Office
410-992-8011 Fax
homes@hiban.com
Recent Posts
- HIGHLAND, MARYLAND ……20777 Is A GREAT Zip Code!!
- COLUMBIA, MARYLAND ……A Planned Community!!
- HOWARD COUNTY PUBLIC SCHOOLS SYSTEM…..One of Maryland’s Best!!
- FORECLOSURE HOMES in HOWARD COUNTY…….Some of the BEST Buys Today!!
- HAMMON ELEMENTARY & MIDDLE SCHOOLS– Homes for Sale!!
- MT. HEBRON HIGH SCHOOL — One of Howard County, Maryland’s Best!!
- HAPPY MOTHERS DAY!!! Buy Your Mom a Home in Howard County, MD!!
- ELDERSBURG, MARYLAND — Search the Up-To-The-Minute MLS Listings!!!
Recent Hiban Team Listings
- $489,900 - 14 Bethayres Ct
- $15,500 - 1550 Pin Oak Dr
- $415,000 - 339 Pickett St S #25
- $245,000 - 445 Lamont St Nw
- $239,500 - 5100 Barto Ave
- $824,900 - 6795 Surreywood Ln
- $195,000 - 208 Edison St
- $539,900 - 6859 Sigfield Ct
- $499,999 - 403 Holly Dr
- $362,900 - 13108 Deer Path Ln
- $355,000 - 7525 Gum Spring Rd
- $269,500 - 106 Twigg Ct
- $456,000 - 14345 Bakerwood Pl
- $279,900 - 101 Mt Vernon Ct
- $1,200,000 - 415 Constitution Ave Ne
- $385,000 - 42465 Malachite Ter
- $369,900 - 828 Stonehurst Ct
- $159,950 - 15106 Arum Pl
- $1,295,000 - 7608 New Market Dr
- $949,000 - 3161 21st St N
- $850,000 - 6450 Jefferson Pl
- $659,900 - 20914 Grantner Pl
- $559,900 - 2304 Lory Ct
- $519,000 - 2147 Dominion Way
- $679,000 - 4763 Arlington Blvd
- $304,900 - 10650 High Beam Ct
- $480,000 - 13745 Hastenbeck Dr
- $349,000 - 7477 Towchester Ct
- $489,900 - 1391 Pennsylvania Ave Se #208
- $339,900 - 8834 Lew Wallace Rd
- $334,000 - 15 Stridesham Ct
- $199,900 - 51 Chesthill Ct
- $129,900 - 99 Green St
- $130,000 - 310 Ryan Rd
- $280,000 - 109 Wild Rose Cir
- $214,900 - 115 Fairway Dr
- $225,000 - 8616 Reicher St
- $155,000 - 7949 San Leandro Pl #105b
- $989,000 - 11626 Cedar Chase Rd
- $375,000 - 57 Wendy Circle Cir
- $329,800 - 11510 Palo Alto Rd
- $255,000 - 11911 Hickory Creek Dr
- $4,750,000 - 2055 Hatchers Mill Rd
- $429,000 - 301 Highview Ave
- $219,900 - 19268 Esmond Ter
- $1,350,000 - 1339 Mayflower Dr
- $525,000 - 13506 Alliston Dr
- $1,295,000 - 816 Rivergate Pl
- $331,817 - 8406 Gibbs Way
- $220,000 - 8414 Spruce Hill Dr
-
$489,900 - 14 Bethayres Ct
Derwood
3 beds, 4 full, 1 part bathsLot size: 18,950 sqftYear built: 1966 -
$15,500 - 1550 Pin Oak Dr
Chambersburg
2 beds, 1 full bathYear built: 1990 -
$415,000 - 339 Pickett St S #25
Alexandria
4 beds, 3 full, 1 part bathsHome size: 2,008 sq ftYear built: 1989 -
$245,000 - 445 Lamont St Nw
Washington
3 beds, 2 full bathsLot size: 1,250 sqftYear built: 1907 -
$239,500 - 5100 Barto Ave
Suitland
5 beds, 3 full bathsLot size: 14,207 sqftYear built: 1960 -
$824,900 - 6795 Surreywood Ln
Bethesda
4 beds, 2 full, 1 part bathsHome size: 3,502 sq ftLot size: 10,479 sqftYear built: 1978 -
$195,000 - 208 Edison St
Brooklyn
5 beds, 3 full bathsLot size: 7,800 sqftYear built: 1920 -
$539,900 - 6859 Sigfield Ct
Manassas
6 beds, 5 full bathsHome size: 4,120 sq ftLot size: 43,560 sqftYear built: 2001 -
$499,999 - 403 Holly Dr
Annapolis
4 beds, 2 full, 2 part bathsLot size: 11,550 sqftYear built: 2003 -
$362,900 - 13108 Deer Path Ln
Germantown
3 beds, 2 full, 1 part bathsLot size: 1,400 sqftYear built: 1995 -
$355,000 - 7525 Gum Spring Rd
Baltimore
4 beds, 2 full, 1 part bathsLot size: 10,130 sqftYear built: 2003 -
$269,500 - 106 Twigg Ct
Stephens City
4 beds, 3 full, 1 part bathsHome size: 3,495 sq ftYear built: 1999 -
$456,000 - 14345 Bakerwood Pl
Haymarket
4 beds, 3 full, 1 part bathsHome size: 4,236 sq ftLot size: 4,809 sqftYear built: 2003 -
$279,900 - 101 Mt Vernon Ct
Locust Grove
3 beds, 2 full bathsLot size: 14,491 sqftYear built: 2005 -
$1,200,000 - 415 Constitution Ave Ne
Washington
4 beds, 3 full, 2 part bathsLot size: 1,900 sqftYear built: 1890 -
$385,000 - 42465 Malachite Ter
Ashburn
3 beds, 2 full, 2 part bathsHome size: 2,000 sq ftLot size: 2,614 sqftYear built: 2006 -
$369,900 - 828 Stonehurst Ct
Annapolis
3 beds, 2 full, 1 part bathsLot size: 1,540 sqftYear built: 2001 -
$159,950 - 15106 Arum Pl
Woodbridge
6 beds, 1 full, 1 part bathsHome size: 1,120 sq ftLot size: 1,599 sqftYear built: 1986 -
$1,295,000 - 7608 New Market Dr
Bethesda
5 beds, 4 full, 1 part bathsLot size: 7,150 sqftYear built: 1954 -
$949,000 - 3161 21st St N
Arlington
3 beds, 3 full bathsLot size: 7,800 sqftYear built: 1954 -
$850,000 - 6450 Jefferson Pl
Mclean
4 beds, 3 full bathsHome size: 2,656 sq ftLot size: 25,933 sqftYear built: 1957 -
$659,900 - 20914 Grantner Pl
Ashburn
4 beds, 2 full, 1 part bathsHome size: 2,987 sq ftLot size: 10,428 sqftYear built: 2012 -
$559,900 - 2304 Lory Ct
Alexandria
4 beds, 3 full bathsHome size: 1,556 sq ftLot size: 27,955 sqftYear built: 1960 -
$519,000 - 2147 Dominion Way
Falls Church
3 beds, 2 full, 2 part bathsLot size: 1,640 sqftYear built: 1983 -
$679,000 - 4763 Arlington Blvd
Arlington
3 beds, 2 full bathsHome size: 1,144 sq ftLot size: 5,994 sqftYear built: 1941 -
$304,900 - 10650 High Beam Ct
Columbia
4 beds, 2 full, 2 part bathsYear built: 1979 -
$480,000 - 13745 Hastenbeck Dr
Gainesville
4 beds, 3 full, 1 part bathsHome size: 4,172 sq ftLot size: 6,686 sqftYear built: 2010 -
$349,000 - 7477 Towchester Ct
Alexandria
3 beds, 2 full, 1 part bathsHome size: 1,240 sq ftLot size: 2,426 sqftYear built: 1983 -
$489,900 - 1391 Pennsylvania Ave Se #208
Washington
2 beds, 2 full bathsHome size: 1,052 sq ftYear built: 2007 -
$339,900 - 8834 Lew Wallace Rd
Frederick
3 beds, 3 full, 1 part bathsHome size: 2,379 sq ftLot size: 2,000 sqftYear built: 2002 -
$334,000 - 15 Stridesham Ct
Baltimore
3 beds, 2 full, 2 part bathsLot size: 2,432 sqftYear built: 1993 -
$199,900 - 51 Chesthill Ct
Baltimore
3 beds, 1 full, 2 part bathsHome size: 1,700 sq ftLot size: 1,599 sqftYear built: 1985 -
$129,900 - 99 Green St
Berkeley Springs
3 beds, 2 full bathsHome size: 1,276 sq ftLot size: 6,098 sqftYear built: 1925 -
$130,000 - 310 Ryan Rd
Glen Burnie
3 beds, 1 full, 1 part bathsLot size: 11,625 sqftYear built: 1955 -
$280,000 - 109 Wild Rose Cir
Winchester
4 beds, 3 full bathsHome size: 2,886 sq ftYear built: 1970 -
$214,900 - 115 Fairway Dr
Winchester
4 beds, 2 full bathsHome size: 2,408 sq ftYear built: 1964 -
$225,000 - 8616 Reicher St
Hyattsville
4 beds, 1 full, 2 part bathsLot size: 21,180 sqftYear built: 1964 -
$155,000 - 7949 San Leandro Pl #105b
Alexandria
3 beds, 2 full, 1 part bathsHome size: 1,300 sq ftYear built: 1976 -
$989,000 - 11626 Cedar Chase Rd
Herndon
4 beds, 4 full, 1 part bathsLot size: 20,550 sqftYear built: 2003 -
$375,000 - 57 Wendy Circle Cir
Mineral
3 beds, 2 full bathsHome size: 1,890 sq ftLot size: 40,946 sqftYear built: 1999 -
$329,800 - 11510 Palo Alto Rd
Lusby
4 beds, 3 full bathsYear built: 1995 -
$255,000 - 11911 Hickory Creek Dr
Fredericksburg
4 beds, 2 full, 1 part bathsHome size: 2,227 sq ftLot size: 13,007 sqftYear built: 1996 -
$4,750,000 - 2055 Hatchers Mill Rd
Marshall
4 beds, 5 full, 2 part bathsLot size: 56.03 acYear built: 1994 -
$429,000 - 301 Highview Ave
Silver Spring
2 beds, 2 full bathsLot size: 7,809 sqftYear built: 1938 -
$219,900 - 19268 Esmond Ter
Germantown
3 beds, 2 full, 2 part bathsHome size: 1,848 sq ftLot size: 1,650 sqftYear built: 1985 -
$1,350,000 - 1339 Mayflower Dr
Mclean
5 beds, 4 full, 2 part bathsLot size: 12,370 sqftYear built: 2012 -
$525,000 - 13506 Alliston Dr
Baldwin
4 beds, 3 full, 1 part bathsHome size: 3,488 sq ftLot size: 1.41 acYear built: 1993 -
$1,295,000 - 816 Rivergate Pl
Alexandria
3 beds, 3 full, 1 part bathsLot size: 1,727 sqftYear built: 1995 -
$331,817 - 8406 Gibbs Way
Cheverly
4 beds, 3 full, 1 part bathsHome size: 2,545 sq ftYear built: 2012 -
$220,000 - 8414 Spruce Hill Dr
Laurel
3 beds, 2 full bathsLot size: 7,500 sqftYear built: 1978
Recent Columbia, MD Listings
- $304,900 - 10650 High Beam Ct
- $390,000 - 5495 Bluecoat Ln
- $305,000 - 7258 Lasting Light Way
- $405,000 - 8844 Shining Oceans Way #37
- $550,000 - 6015 Middlewater Ct
- $275,000 - 6710 Carlinda Ave
- $294,500 - 8300 Silver Trumpet Dr
- $239,000 - 5488 Mystic Ct
- $315,000 - 5026 Southern Star Ter
- $275,000 - 7406 Sweet Clover
- $289,900 - 7103 Winter Rose Path
- $394,900 - 5067 Blacksmith Dr
- $329,000 - 7276 Calm Sunset
- $389,900 - 6086 Sunny Spg
- $459,900 - 6108 Striker Ct
- $400,000 - 6954 Newberry Dr
-
$304,900 - 10650 High Beam Ct
Columbia
4 beds, 2 full, 2 part bathsYear built: 1979 -
$390,000 - 5495 Bluecoat Ln
Columbia
4 beds, 3 full, 1 part bathsLot size: 8,050 sqftYear built: 1971 -
$305,000 - 7258 Lasting Light Way
Columbia
4 beds, 3 full, 1 part bathsLot size: 1,698 sqftYear built: 1977 -
$405,000 - 8844 Shining Oceans Way #37
Columbia
4 beds, 4 full bathsHome size: 3,500 sq ftYear built: 2007 -
$550,000 - 6015 Middlewater Ct
Columbia
4 beds, 2 full, 1 part bathsHome size: 3,642 sq ftLot size: 11,664 sqftYear built: 1987 -
$275,000 - 6710 Carlinda Ave
Columbia
3 beds, 1 full, 1 part bathsLot size: 15,246 sqftYear built: 1962 -
$294,500 - 8300 Silver Trumpet Dr
Columbia
3 beds, 3 full, 1 part bathsHome size: 1,760 sq ftLot size: 1,960 sqftYear built: 1990 -
$239,000 - 5488 Mystic Ct
Columbia
3 beds, 2 full, 1 part bathsYear built: 1969 -
$315,000 - 5026 Southern Star Ter
Columbia
3 beds, 3 full, 1 part bathsYear built: 1990 -
$275,000 - 7406 Sweet Clover
Columbia
4 beds, 3 full, 1 part bathsHome size: 2,618 sq ftLot size: 1,785 sqftYear built: 1979 -
$289,900 - 7103 Winter Rose Path
Columbia
4 beds, 2 full, 1 part bathsLot size: 1,524 sqftYear built: 1977 -
$394,900 - 5067 Blacksmith Dr
Columbia
4 beds, 2 full, 1 part bathsHome size: 2,670 sq ftLot size: 8,068 sqftYear built: 1969 -
$329,000 - 7276 Calm Sunset
Columbia
4 beds, 3 full, 1 part bathsLot size: 1,800 sqftYear built: 2000 -
$389,900 - 6086 Sunny Spg
Columbia
4 beds, 2 full, 1 part bathsLot size: 4,843 sqftYear built: 1978 -
$459,900 - 6108 Striker Ct
Columbia
4 beds, 2 full, 1 part bathsHome size: 2,068 sq ftLot size: 9,844 sqftYear built: 1987 -
$400,000 - 6954 Newberry Dr
Columbia
3 beds, 2 full, 1 part bathsLot size: 10,597 sqftYear built: 1990