Two of the nation's leading credit reporting bureaus,
Credit scores, which are a determining factor for a low cost mortgage approval, can now include data regarding rent payments when they are ordered from the two bureaus. Previously, rent was among a long list of payments that had no effect on credit, including Internet, cable and electricity bills. Now, renters who wish to obtain financing for a home have another avenue to boost their financial rating.
If you're wondering how much of an effective rent payment can have on a credit score, TransUnion said at the
Giving renters a new advantage
"Despite millions more renters, most rental payment histories are not provided to credit bureaus, and renters looking to improve their credit standing cannot do so," said
Greater access to loans
Many potential first-time home buyers are stuck in the rental market due to a credit history that doesn't give the full picture. This can be especially true for individuals with student loans who may be making on-time rent payments but have a large amount of outstanding debt. If they were homeowners, they could have more affordable monthly housing costs and build credit by continuing to pay their bills by the due date. Yet, the credit barriers to getting a mortgage make this goal harder to achieve. The new reporting options offered by TransUnion and
"We believe reporting rental payment performance is simply the right thing to do for apartment residents and the apartment rental industry," Martin said. "Renters will be able to build positive credit history, gain access to more financial products, and most importantly, help them recover from the housing market crash."
And the expanded reporting doesn't stop there. According to the
Read the full story at http://www.prweb.com/releases/2014/07/prweb12008346.htm
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