If you are researching ways to improve your credit rating, add paying your rent on time to the checklist. Experian, one of the major credit bureaus in the United States, has begun to factor in timely rent payment information in credit files. Experian is the first credit bureau to use data about paying rent on time, rather than paying rent late, to affect credit ratings. It may just be worth obtaining a cash advance to make sure rent is paid if you are trying to fix your credit score. Source of article – Experian starts using rental payment data to figure credit scores by MoneyBlogNewz.
Experian utilizing rental data in a optimistic way
Good rental information started to be something utilized by Experian. Before this, negative rental information was the only thing credit reports showed. The only reason why negative information was reported was because landlords would sent renter's accounts to collection. This would make a bad mark on a credit score. Now Experian is tracing rental information through its RentBureau division. The specialty credit agency RentBureau gets a lot of rental payment information from landlords. Over 8 million households are included in this. Experian explained that there are millions who pay rent on time and don't get credit for it. About 96 million renters are doing this.
Good for renters and landlords
Most are anxious about the Experian news. It is really good. Getting sent to collections was the only way to get an unfavorable mark before while now, Experian criteria starting in 2012 may consist of getting behind also. But industry experts agree that adding rental payment data to credit reports is by and large an optimistic development for customers. Young individuals who don't have any charge cards, auto loans or mortgages might really appreciate this bit of help. Landlords will also appreciate it. RentBureau property owners will be able to see if applicants can be good renters by checking the database.
Same thing moving through credit bureaus
An emerging credit agency called VantageScore, which ranks customers on a scale from A to F, has been already utilizing rent payments in its credit rating model. All of this change from Experian might make lenders and underwriters want rental data. Credit ratings could possibly be changed this way. FICO has said that it will evaluate and compare Experian credit files that factor in rental payment information. If more people can qualify for credit that is well deserved, more will be getting homes meaning rental data in credit scores could help the mortgage lending industry.
Citations
Huffington Post
huffingtonpost.com/chris-birk/rent-payments-may-soon-af_b_817642.html
Baltimore Sun
weblogs.baltimoresun.com/business/consuminginterests/blog/2011/01/experian_adding_rental_payment.html
Wallet Pop
walletpop.com/2011/01/31/credit-bureau-starts-tracking-rent-payments-good-news-or-bad-ne/
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