It’s hard to believe that there’s anyone left in America that didn’t take advantage of the easy credit opportunities prior to the economic meltdown of 2008.
Still, there are people left who have either shunned credit or simply hadn’t had the chance to borrow before borrowing money became a challenge. This is where websites like https://fastloansnearyou.com/ can help. With them, you can find payday loans near you even if you have bad credit or no credit history at all!
If you are among those who have somehow avoided borrowing money, and now find that you need a loan, you’ve likely found the process frustrating if you haven’t taken advantage of Regulation B of the Equal Credit Opportunity Act.
This little-known aspect of the Federal Equal Credit Opportunity Act can mean the difference between getting a loan and being declined yet again for borrowers with scant credit history.
Despite the American reliance on credit, the Federal government recognizes that there is a segment of the population that may not use credit frequently or at all, and therefore do not have the pages-long credit report the rest of us have amassed.
However, even if you haven’t paid on debt, you’ve no doubt paid something regularly, such as rent or utilities.
Regulation B of the Equal Credit Opportunity Act requires lenders to consider credit information not included as part of a credit bureau’s report if it’s a similar type of credit account that would be considered as part of a credit report.
So what is “credit information not included as part of a credit report”? It’s all those bills you pay every month, such as your water bill, your electricity bill, your rent, your insurance.
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Most of these accounts are not reported to the credit bureaus unless you fail to pay – which unfortunately means that your years of faithful, on-time payments are not recorded. It’s up to you, then, to assemble your own alternative credit history showing your payments to these entities.
Ideally, your alternative credit history should include statements showing the length of your accounts with your utility companies, insurance companies or landlord, and some record of your timely payments. Most utility and insurance companies can provide you with a record that goes back at least seven years upon request; for landlords and other private businesses, you may need to ask for a written, notarized statement.
Make several copies of these statements, and present them, along with a letter invoking Regulation B of the Equal Credit Opportunity Act, to lenders when you apply for a loan.
This letter puts the lender on notice that you’d like your alternative credit history considered, and gives you the opportunity to discuss with the lender your credit-worthiness.
Taking advantage of Regulation B means assembling your own alternative credit history that proves to lenders that you have met your financial obligations in the past, and will continue to do so.
It could be the difference between the loan you need and another denied application.…