Last year, Experian-the credit report company- added a section which includes rental payments. It helped elevate scores for tenants who paid rent on time. Two other credit report companies are also adding the rental payment history section to their reports. Sources at FICO report that on time rental payments may help consumers because consumers with a low score could see an increase of 100 points or more on their reports. It seems as though the rental payment history does not have much effect on people with average or above average scores to begin with.
It seems that the new addition to the report benefits people who have been through a foreclosure, because it’s an opportunity for them to rebuild credit history quicker because they are paying rent on time. Given the number of foreclosed properties that have been on the market and are still to come, this news is helpful for those who have suffered the loss of their homes.
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