95 Million! That’s the number of renters in the United States. Why am I telling you this? Because chances are that you’re one of them! If I’m right, then you will want to read this blog. If you’re not a renter… then share it with one of your renter buddies. Ok, make yourself a hot cup of joe ☕ and continue reading.
If you are like most of renters… there is no delight found in your heart at the 1st of each month as you drop loads of cash on rent. If only there were a way you could be rewarded for paying your rent.
What if I told you there is. No, I can’t get you out of paying rent. But how about improving your credit score?
We are pretty excited to introduce a new partnership program called Rental Kharma. These guys report your monthly on-time rent payments to TransUnion Credit Bureau. This shows your rent payments as an “open trade line” and can increase your credit score. Rental Kharma can even report as far back as 2 years. Considering that 30% of your credit score is based on your credit history, this is a pretty sweet deal; giving you 2 years of positive reporting.
By the way, it only takes an average of 7 days for this to appear on your credit report. That’s incredibly fast!
A common misconception
You may be one of the folks that believe their rent is already being reported because the leasing office did a credit check during the application process. This is a common misconception. Landlords and apartment complexes do check your credit, but they are not required to report any rental activity. However, they will certainly report to the bureaus if you break your lease outside of your agreement. Avoid that! It will wreck your credit scores.
Rent is increasingly being factored into your credit score.
As of now, not every business or bureau factors your rental payments into your credit score, mainly because not everyone needs to know your rental history and don’t want to purchase that information. After all, that’s what credit bureaus do – they collect consumer information and sell it to lenders and creditors in the form of a credit report and credit score.
Experian (1 of the 3 largest bureaus) factors in your on-time rental payment data reported to “Experian RentBureau” into their credit reports. The addition of positive rental payment history within Experian credit reports allows you to establish or build credit history through timely rental payments. Continuous on-time rental payment data also may be incorporated within their credit reports, which are used by various types of credit-granting institutions, including banks, auto finance companies and telecommunications providers.
Experian is just an example, today, more and more bureaus are factoring rental payments into your credit score. It’s a growing trend.
In All Fairness
In all fairness, there are other companies that offer rent reporting services. But we like Rental Kharma because they have excellent customer service and customers that rave about their results.
Have a great day!