How to Use Alternative Sources to Establish Credit

Alternative Sources of Credit

1. Rental Records

Your consistent and timely rent payments can serve as valuable evidence of your creditworthiness. These records
demonstrate your ability to handle monthly payments responsibly. To use rental records as an alternative credit
source, provide the lender with canceled checks or a letter from your current landlord, stating your on-time payment

2. Utilities

Regular payments of utilities such as water, internet, electricity, phone services, and cable can further showcase
your reliability in handling financial obligations. Submitting proof of these payments, made on time and in full,
reinforces your creditworthiness to potential lenders.

3. Insurance

If you don’t meet the minimum credit requirements set by financial institutions, any form of insurance you carry can
be a helpful alternative credit source. Car, health, and house insurance payments can demonstrate your ability to
manage financial responsibilities. Make sure these insurance payments are not automatically deducted from your
paycheck to use them as valid credit evidence.

4. Medical Bills

Providing updated statements showing that you’ve paid off your medical bill balances can be a substantial asset to
your credit application. When combined with rental and utility statements, it showcases your ability to manage
multiple accounts responsibly.

5. Child Care Payments

Payments related to childcare, such as tuition fees, can influence lenders in considering your creditworthiness.
Demonstrating a history of prompt payments for child care can be influential in convincing lenders of your credit

Gathering the Records

Obtaining the necessary records may seem daunting, but it is relatively straightforward. A quick phone call to
service providers can get you a printout of your payment history for the past year. If you pay rent to an individual,
ensure you have 24 canceled checks as proof of rent payment for the last two years. If you don’t have these checks,
your bank can assist you in quickly obtaining them. It’s crucial to provide accurate and truthful information to your
lender for these alternative sources of credit to be effective.


Securing a home loan in Colorado without an established credit history is indeed possible. By leveraging alternative
sources of credit such as rental records, utilities, insurance payments, medical bills, and childcare payments, you can
demonstrate your creditworthiness to potential lenders. Remember to be honest and thorough in providing evidence of
your financial responsibility. With diligent effort and proper documentation, you can increase your chances of
obtaining a mortgage loan and achieve your dream of homeownership.

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