With so many websites offering free financial tools, it can be hard to know whom to trust. For this reason Better Credit has conducted extensive research to share with you current information so you can make the best financial choices.
When it comes to rent history the three major credit bureaus do not have a section for this. So 99% of those who pay rent regularly do not have this information reported on their credit reports. This is unfortunate because, outstanding renters are not being rewarded with higher credit scores because of this.
Yet, oddly, any late payments or evictions are reported. Therefore renting typically can hurt your score instead of improve it until recently. Savvy companies, like Better Credit, have begun to help its clients improve their credit scores by reporting rental payment history.
Payments made on time the #1 factor in your credit score report. This represents 35% of your credit score. Your rental history is a large chunk of data that is missing from your report. Most people have excellent rental history and aren’t aware that they can use this information to improve their credit scores.
To get started you’ll need to go through a trusted company because at the moment you’re unable to report this information to your credit reports. Contact Better Credit today if your rental history is missing on your credit report.
One thing to note is that because credit scores are reported differently, lenders might not use the highest score. For instance the next time you apply for a credit card or a home mortgage, depending on the financial institution they might check only one report or all three. It’s up to them.
Know Where Your Payments are Reported
To make the most of your rental history find out which credit bureau reports your rental payments and understand which credit score will be affected by this report.
Your rental history might help banks and other lenders who are verifying your creditworthy. Rental associations prefer tenants who display consistent payment history.
What questions should you ask a rent-reporting service?
If you’re shopping for a way to have rent reported on your credit report, here are the top questions to ask. Before you do, verify whether your property manager already works with a service.
- Including setting up the service what are your annual fees?
- What ways do you protect my information?
- Do you report to all three credit bureaus?
- Will you allow me to view my scores for free?
- When is the earliest I can view the changes on my credit report?
- Do you have any cancelation fees?
- I might have a dispute with my renters association, what then?