If you’re living in one of America’s 40 million renter households, there’s an easy way for you to quickly and painlessly increase your credit score and even help qualify for a mortgage.
What’s the secret? Simply adding your rental payment history to your credit reports.
By adding alternative credit data, such as rent payments, you can successfully raise your credit score fast.
Here’s what you need to know:
For starters, you must have your landlord agree to add your rental payment information to your credit files with Equifax, Experian, and TransUnion. In other words, you can’t report your rent payment data yourself; only property managers can do it for you. This way, you can initiate the process and get the ball rolling quickly and easily, and see results.
According to a research study from Experian, just one month’s worth of positive rental payment history is reported on an individual’s credit report was enough to strengthen his or her credit score. In the study, Experian used the VantageScore 3.0 and discovered that 75% of study participants saw their credit scores jump, most by 23 points or greater.
TransUnion likewise has recently produced research on this topic, and it too found that your credit score can improve after only one month of including rental data in your credit reports. With TransUnion’s study, nearly two-thirds of participants got a boost to their credit scores, with many gaining a 20-point increase. In one month!
This is awesome for people that don’t have established credit as well.
How can you add rent payments to your credit reports?
Rent Reporters lets renters nationwide update their credit files with rental payment history with the major credit bureaus for a very small fee. This one of a kind service allows reporting as much as 24 months’ worth of your past rental payment history. Rent Reporters verifies your rental payment history at your current address and can “certify” your previous rental payments, and report that directly to the credit bureaus also.
With services like this, people with thin credit files can establish credit, build their credit rating, or increase their credit scores with new payment history. In prior years, the only information that would report on consumer files were major loans and credit cards. As for utilities and rent? You’ll see them… if you default. We know that’s not your goal.
If you pay your rent on time faithfully, this is great news for you! You can build your credit score while you’re preparing for your next major purchase, and it’s easy.
The Bottom Line
Building your credit can be a long, time-consuming process. But, with the right resources, it can be cut in half. If you’re currently renting, and your payments are not being reported on your credit reports, contact our friends at Rent Reporters They will take care of you.
Hi Jeri, how do I take advantage of this?