can use as positive credit if you pay them on time for 12 months or more. Accounts such as; your electric bill, car payment, rental payment, cell phone etc. If you are looking to purchase a home anytime soon, paying these types of accounts on time each month is the best start you can get. Keep in mind that rental payments to private owners have to be made by personal check or bank cashier check from your own account to count as a credit line. Many buyers think that paying in cash on time is good enough or a letter from the land lord stating the payment of rent will do. This is not the case. Lenders want to see cancelled checks for rent over a 12 month period when using rent as an alternate line of credit. The only exception to this is if you rent from an apartment complex and pay with cash. |
| What are alternate lines of credit? |
