What is NOT included in Tier 2 of the Alternative Credit Tiers?

In the context of the Alternative Credit Tiers, Tier 2 encompasses specific types of payment obligations that can be used to assess a borrower's creditworthiness. This tier includes various types of consistent payment histories, such as payments made to national chain daycares, Rent-A-Center payments, and auto insurance payments, all of which are factors considered in building a fuller picture of a borrower’s financial responsibility.

Payments to local businesses, on the other hand, generally do not provide the same level of uniformity and reliability in establishing creditworthiness as those included in Tier 2. Local businesses may not report payment histories consistently or may not be recognized in the same way as national chains or standardized payments such as insurance or rent. As a result, payments to local businesses are excluded from Tier 2 and are less likely to be used to supplement traditional credit evaluations. This distinction illustrates the emphasis placed on standardized, consistent payment types that can effectively demonstrate a borrower’s financial habits.