This is a guest post written by John Simpson, CEO of RentReporters.
In the US, there are more than 100 million households that pay rent every month. That number is growing every day, especially in urban areas. Just like homeowners with mortgage payments, that cost of having a place to live is most likely the largest monthly expense for renters. Yet unlike homeowners’ mortgage payments, rent payments have not historically been included in the calculation of credit scores by the major credit bureaus. This means that the single largest recurring financial obligation that millions of renters pay diligently each month has ZERO impact on their credit score.
That doesn’t seem right. After all, isn’t a credit score supposed to accurately reflect the way you pay your debts and obligations?
With RentReporters, today is the day you can start changing the course of your financial future — by taking charge of your credit score. And credit is important. It follows you for your whole life and is what enables you to qualify for the best cell phone plan, buy a car, eventually get a home mortgage, and even meet all of the criteria for that new job that you want.
This lack of rent reporting is a serious issue for all renters, whether they have no or low credit scores, or already have good or excellent credit. Many with no or low scores are treated as virtually ‘credit invisible’ by many of the mainstream institutions that grant credit. Being credit invisible should not mean that you are not worthy of receiving credit and using it responsibly. It just means that you have not participated in the kinds of financial activities that have allowed a score to be calculated. This can happen to anyone – newly graduated students, military personnel returning from overseas, and people on their own for the first time who have not previously established records of credit.
RentReporters was born out of the belief that it’s time to change the system to enable renters to get the credit scores that they have already earned through their responsible financial behavior. We help renters proactively impact their credit scores simply by having the last two years of rent history and their ongoing monthly rent payments automatically reported to major credit bureaus.
The process is simple. You pay your rent. It gets reported to the credit bureaus just like any other debt repayment — like a credit card or student loan payment. And our experience has shown that your score will most likely improve within a very short period of time.
At RentReporters, we believe that changing your credit score is not just about changing a number. It is about creating a path from a world that was once life limiting to one that can be life changing.
If you’re paying rent, it’s time to start having those rent payments reported to the credit bureaus and reaping the rewards of a better credit score. Learn more about RentReporters today!