Renting can now help build a great credit score

Credit bureau Experian just announced in a press release last week that it will now include good rental history on credit reports. Previously they only included bad renting history on credit reports.

Before this announcement, only homeowners could benefit from their timely monthly housing payments, with renters being left out in the cold as far as their payment history is concerned.

This is a great step forward for many renters across the country, trying to build a good credit history. However, there’s a catch. Experian is the only one of the big 3 credit bureaus (the other two being Equifax and TransUnion) that are adopting this. Also, it only applies to Experian’s own VantageScore credit score, not to other credit scores such as the more popular FICO score.

Nevertheless, we think this is a great leap forward for the estimated one third of the country who currently rent. We just hope the other credit bureaus will get on board so all the great tenants out there can be rewarded for their on-time payments!

4 Comments

  1. Sharon

    That’s is AWESOME! We just started looking for a house to purchase and have been rebuilding our credit. We have lived here and paid our rent ON TIME EVERY TIME for the last 12 years. How can we get our landlord to report our timely payments to Experian?

    Reply
    1. admin Post author

      Your landlord will actually need to pay a fee to report your payment history to Experian. Check out http://www.clearnow.com/creditreporting for details. According to clearnow.com the tenant must also opt in to the reporting. Check with your landlord and see if this is something they would consider doing. If they are not already participating in the program, it might be a tough sell. You might try offering to pay the fee for the service just to get the ball rolling. Good luck!

      Reply
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  3. Kelly

    I’m glad to hear that, I’m a renter and am trying to build my credit history so I can hopefully buy a home one day.

    Reply

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