Rental Payment History Has Now Become Important in Getting a Mortgage…
Individuals who currently rent & have a history of paying rent on time may see a boost to their credit score.
Last year, Experian, one of three major credit reporting companies, added a section to its credit reports that reflected on-time rent payments, which helped give a boost in the credit scores to some on-time rent payers. Equifax, Trans Union, the other two major credit reporting companies, are now following suit & will soon be adding this section to their reports as well.
The New York Times reports that CoreLogic and FICO have also announced that they will be adding a score that reflects payment histories from landlords.
Brannan Johnston, the managing director of Experian’s rent bureau, states that half of high-risk consumers saw an increase of 100 points or more after their rental history were added to their credit reports. Brannan also stated that consumers with average or higher credit scores, on the other hand, did not see any major difference to their scores.