What components are included in Tier 1 of the Alternative Credit Tiers?

The correct choice regarding the components included in Tier 1 of the Alternative Credit Tiers is household utilities. This tier typically comprises bills and payments that are recurring and reflect a consumer's regular financial behavior, such as payments for utilities like electricity, water, and gas. These types of payments are often used to establish creditworthiness for individuals who may not have a traditional credit history.

Household utilities are vital as they demonstrate the ability to meet financial obligations in a consistent manner, providing lenders with insight into an individual’s financial reliability. This is essential as it helps to create a comprehensive view of a consumer's ability to manage credit responsibly and make timely payments, which is a crucial factor in credit assessments.

Other options, while related to financial behaviors, do not typically form part of Tier 1; thus, they do not share the same relevance in evaluating creditworthiness in the context of alternative credit assessments.