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Nontraditional credit: what it means

Nontraditional credit, sometimes called alternative credit, is a way to show you pay on time when you have no credit score or a very short traditional credit history. Under Fannie Mae's rules, the lender first checks all three credit bureaus; if there is no score, it documents your regular payments over the most recent twelve months, such as rent, utilities (electricity, gas, water, phone, internet), insurance, child care, school tuition or steady money transfers.