Getting a Loan Without Credit

Having little or no credit history can make it hard to get approved for an auto or mortgage loan. Plenty of consumers have built positive payment habits through monthly non-debt payments like rent and utilities. The problem is, these types of payments aren't included in your credit reports and from the major credit bureaus which many lenders use to approve loan applications.

Dr. Don, expert at Bankrate.com, reveals how consumers can get approved for loans by using non-debt payments.

Payment Reporting Builds Credit, a relatively new consumer reporting agency created in 2002, allows consumers to register and have these payment histories verified. The verified payment history can be used by creditors in the loan application decision.

Payment Reporting Builds Credit, PRBC, has also partnered with Fair Isaac to provide a credit score, the FICO Expansion Score, based on this "non-traditional" payment information.

Since PRBC is relatively new, not all lenders are aware of and use PRBC as a means to make loan decisions. Dr. Don advises finding lenders who are willing to use the tool to approve your application.

See the full column at Bankrate.com: No credit? Tools can help you get loan

Read more on the PRBC Report and FICO Expansion Score.