Renting Can Raise Your Credit Score by 40 Points Instantly
Do you rent an apartment, house or condo?
Are you making your monthly rent payments on time?
Would you like a higher credit score?
If you answered yes to these 3 questions, then we have good news for you!
Good renters deserve good credit.
You can now use a service like RentCreditHero to raise your credit score an average of 40 points!
Keep reading to learn more.
How Renting Affects Credit Scores
Many landlords pull your credit report when reviewing your rental application for approval.
This is a hard inquiry check, which is then listed on your credit report, and can cause your credit score to decrease. If you’ve made several applications, it may have a noticeable negative effect on your credit. Inquiries on your credit report make up 10% of your overall score.
If you fall behind on your payments, it gets reported to collection agencies, which also shows on your credit report and can badly decrease your score. On top of that, late payments can also result in eviction from your residence.
With so much at risk, shouldn’t your on-time rent payments count as well, and help your credit?
Yes it should, and finally the credit bureaus agree.
Are Rent Payments Listed on Your Credit Report?
Rent payments are one of the largest bills you pay every month.
Mortgages, loans and credit cards are all listed on your credit report, so your rent payment must be listed too, right?
Unfortunately, it probably isn’t. FICO has estimated that less than 1% of all credit reports contain rental entries.
Rent payments aren’t routinely reported to credit agencies by default. Until recently, they weren’t even considered at all.
This has now changed. Renting an apartment is in some sense like taking out a loan and paying it back in monthly installments.
Using this perspective, all three major credit bureaus now accept rent payments as part of your credit score.
This is great news since 35% of your credit score is based on payment history.
If you pay your rent on time each month, you could boost your credit score an average of 40 points from rent payment reporting.
The only catch is, you can’t report it yourself.
But you can report up to 24 months of your payment history through a rent reporting service.
Rent Reporting Explained
How to Raise Your Credit Score with RentCreditHero
Your rent payments will help add positive trade lines to your payment history, which can increase your credit score.
RentCreditHero, featured on many of the top news publications, makes that process as simple as possible.
It takes less than 5 minutes!
Sign up and input your ongoing and historical rental information up to 2 years through their secure website.
They will organize your data and submit it to the credit bureau on your behalf.
With the extra payment history and positive trade lines now on your credit report, your credit score can increase. Simple!
It’s time to put your rent payments to good use!
40 points can completely change your credit score bracket, granting you lower interest rates and easier approvals!
Click the banner below to get started with RentCreditHero.