A lot of people who don’t have much in the way of a credit history do have a history of paying rent on time. If that information showed up on their credit reports, it might help their scores. Rent Reporting can change the credit game for many people.
1 in 3 people in the US pay rent. That equates to 100 million people paying over $300 Billion in rent annually with very few getting credit for their on-time payments. That makes rent the largest expenditure with the least impact on a consumer’s credit report. But not anymore! This is where Rent Reporting changes the game.
How does rent reporting compare with other types of credit building?
Other credit-building strategies rely on more traditional methods. You can get a secured credit card, for example, or a credit-builder loan. Revolving debt, such as credit cards, and installment loans are considered in virtually every credit score.
Rent information will help lenders that are prospecting for possibly creditworthy people who have been overlooked. Also, if you have rent reporting information on your credit report, it could help you if you rent again later. Because lenders prefer a renter that has a history of paying on time.
Right For You?
Rent payment reporting will have a significant impact for younger consumers with limited, or nonexistent, credit history. These consumers can’t get a credit card in just their name until they are 21, so rent reporting is a great way to get a jump start on building a solid credit profile. Also for people that are trying to rebuild a credit score so that they can be approved for larger loans or mortgages.
So, while sending a rent check in the mail helps keep a roof over your head, it does not help establish your good reputation with anybody except your landlord. Start securing your financial future by using online rent payments services today so you can set it, forget it, and build credit history.