What does the law say about alternative credit information?

Section 202.6(b)(6) of the Equal Credit Opportunity Act (ECOA) is a Federal law, enforced by the Federal Trade Commission (FTC) that states:

To the extent that a creditor considers credit history in evaluating the creditworthiness of similarly qualified applicants for a similar type and amount of credit, in evaluating an applicant's creditworthiness a creditor shall consider: (i)The credit history, when available, of accounts designated as accounts that the applicant and the applicant's spouse are permitted to use or for which both are contractually liable; (ii)On the applicant's request, any information the applicant may present that tends to indicate that the credit history being considered by the creditor does not accurately reflect the applicant's creditworthiness; and (iii)On the applicant's request, the credit history, when available, of any account reported in the name of the applicant's spouse or former spouse that the applicant can demonstrate accurately reflects the applicant's creditworthiness.

The law is pretty clear that you have the right to present any information that demonstrates your creditworthiness, but the law is not clear about exactly how the creditor is required to “consider” the information. This is precisely why eCredable took the approach of only reporting your “alternative credit” accounts to NCRAs who have agreed to include it in your core credit file – not a separate credit database that might be used for other purposes (like creating unique credit scores that are only used in unique circumstances).