PRBC - The 5th Credit Bureau

Headquartered in Annapolis, Maryland, PRBC was incorporated on March 12, 2002 under the name Pay Rent, Build Credit, Inc. The company name was later shortened to PRBC because all recurring bill and loan payments can be used to build credit, not just rent.

PRBC received two initial funding grants from the Ford Foundation in support of the company's mission to build a national data infrastructure that incorporated rental payments into credit reporting to benefit consumers. PRBC also received funding from the Omidyar Network, The Center for Financial Services Innovation and Total Technology Ventures. Initial data subscribers included Fannie Mae, Freddie Mac, and Citimortgage.

In 2005 and 2006, the National Credit Reporting Association (NCRA) and the National Association of Mortgage Brokers (NAMB) announced separate agreements with PRBC to help educate consumers how to document their creditworthiness by building a credit history based on their non-debt recurring payments.

In November 2006, PRBC received a patent from the United States Patent and Trademark Office for the company's technology and method for collecting data on commonly recurring bill payments made by individuals and small businesses, and incorporating them in a credit file, credit report, and credit score.

In December 2006, Fannie Mae and Freddie Mac acknowledged that PRBC Reports comply with standards for establishing the credit reputations of borrowers for loans that can be sold to them.
In March 2007, mortgage insurer Mortgage Guaranty Insurance Corporation (MGIC) announced an agreement to use PRBC Reports with PRBC Bill Payment Score (BPS) to automate their approval decisions for consumers with "thin" or no traditional credit histories.

At the end of 2007, Fair Isaac and PRBC announced a partnership to deliver PRBC Credit Report with FICO Expansion Score, a comprehensive credit risk management tool that U.S. mortgage lenders can use when assessing the risk of applicants who have little or no traditional credit history.

How To Establish Credit With A Secured Credit Card

Establishing good credit with no credit history can seem like a daunting task, but obtaining a secured credit card is one option that can help you build a strong credit foundation if managed responsibly.

Secured credit cards vary from traditional credit cards in a number of ways, the first being that they require cardholders to put down a security deposit to open the account. The deposit, which serves as collateral in the event that you cannot make the payment, is generally equal to your credit limit. This means if you put down a security deposit of $200, your credit limit would be equal to $200. Keep in mind that secured credit cards may carry fees and initial account setup costs, which will be deducted from your available credit limit when you open the account.

Using Secured Credit Cards To Build Credit

Secured credit cards can build your credit. Building up your credit has become even more important over the past few years as credit is harder to come by. Secured credit cards can help people with little credit history build credit and even save some from bad credit.

When lenders look at a credit report, one of the things they want to see is that you have a history of repaying loans in a timely manner. If you've never taken out a loan before or have only been using credit for a short time, lenders often lack the information they need to decide how creditworthy you are. In cases like this, a secured credit card might be your only option.

In the same way, if you had a rough period where your bills went unpaid or were only paid sporadically, it can be difficult to convince lenders that you are going to pay off any new loans. If you do manage to get a loan or credit card while having these black marks on your credit report, you will likely have to pay high fees and high interest rates.

Rebuilding your credit
There is a way to build -- or rebuild -- your credit. A secured credit card works like a debit card. Once you are approved, you make a deposit into an account linked to this new credit card. The card you receive will have a Visa or MasterCard logo on it, but you will not be able to charge more than the amount you previously deposited onto the card.

Over time, as you continue to make payments and stay within your credit limit, you are building credit history and improving your credit score.

Be a careful consumer
Some secured credit cards have fees. Also, ensure the card issuer reports your account to at least one of the three main credit bureaus so it can help improve your credit score. It is important to research the card the same way you would an unsecured card. Also, check whether your current bank or credit union might have a secured credit card to offer you.