Having your rent payments “count” toward your credit history
IS NOT AUTOMATIC!
It is YOUR responsibility to find if your rental payment information is being reported.
WHY Building Your Credit History Is Important
Our goal is to show you the benefits of building a good credit history and to tell you how your rent payments can be added to that report. We believe that responsible renters should get credit for managing their rental payments.
Credit plays an important role in your life — affecting the purchases you make and much more. A credit history is vital in today’s economy and enables you to obtain valuable credit services such as credit cards, mortgages and auto loans.
Lenders use credit reports and credit scores to gauge the likelihood that you will pay back a loan, which in turn affects the interest rate you will pay. A higher interest rate means higher monthly payments and a higher total cost of your home, car, washer-dryer or whatever.
HOW to Build Your Rental Payments Credit History
Connect with the following services to track your rent payments and have the information reported to the credit bureaus.
Reported to all three credit bureaus
RENTTRACK – RENTTRACK.com
To Make Sure Your Rent Payments Are Reported
1. If you currently rent or are considering renting, ask your property management company if it reports rental payment data to Experian RentBureau or other rental payment service providers as above.
2. If you rent from an individual landlord or property management company that does not report data, sign up through a rent payment service working with a credit bureau. These services allow for the payment and collection of your rent electronically. And as an added benefit, you have the ability to opt in to reporting your rental payment history to Experian RentBureau, where your payment history is stored.
3. MORE IMPORTANT NOTES:
• You cannot report your own rental payment history.
Only property management companies and rent payment services working with Experian RentBureau can report rental payment data to Experian RentBureau at this time.
• Where lenders use rent information
Each credit grantor decides what standards they require to extend you credit. Some lenders may consider your rental payments’ record when determining your ability to pay any new debt.
BOTTOM LINE: If your payments are not being recorded anywhere, all of your good efforts to pay on time will not help your credit score.
For more answers to frequently asked questions about rental payments on your Experian credit report click here.
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Want to know more about building a healthy credit history or ANYTHING ELSE ABOUT BUYING OR SELLING A HOME?
Call me at: 949-484-6322
Buying or selling a home is a big decision. Don’t go it alone.