Non-traditional credit has been available for people seeking home loans for several years. These are for those who have paid cash for major purchases such as cars or appliances, for people for whatever reason do not use credit cards. Alternate credit can include on time payments of things like utilities, cable bills, and more, but timely payment of rent is vital. George Souta, a mortgage lender from Connecticut, gave a great run-down of non-traditional credit.
The remainder of the four credit references that the Borrower will need to provide can come from:
* Insurance Company (not payroll deducted)
* Child Care
* School Tuition
* Cell Phone
* Car Lease
* Personal Loan with formal payment terms.
* 12 month history of saving deposits which result in an continuous increase in the balance (cannot be payroll deducted)
He offers additional valuable information in his great article. Read more here.