Building credit can be difficult without a credit history. In the past, if a consumer did not have any credit history, it was even harder for a lender to extend them credit. However, with the recent announcement by Experian®, all that’s changed. Experian recently announced that they will now include rental history on credit reports! This will be a tremendous boon to those looking to build their credit history.
Unlike mortgage payments (and other loans), on-time rent payments were not shown on credit reports, making it difficult for renters to prove their creditworthiness and fiscal responsibility. Historically, only evictions and collections were reported. This new reporting will make it easier for renters to establish a positive credit rating.
According to Experian, RentBureau® receives payment data from a network of national property management companies every 24 hours. Participating property management companies must submit the data for it to be included in credit reports. If your property management company doesn’t report rent payments, be sure to ask them to contribute to Experian® RentBureau®.
Category: Apartment Renting 101