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Positive Rental Payment History May Help Build Credit

Over the past five years, the number of renters has risen to 40 million, which is about 35% of the US population. Many of these individuals make their rent payments on time every single month, and show a responsible history, but until recently, it didn’t boost their credit rating.

Now, Experian, one of the three big credit bureaus, is reporting rental payment history on its credit report for those landlords and property management companies who utilize ClearNow, an automated service for collecting rental payments. For those who already participate in ClearNow, their history is automatically included on their credit report. Individual renters must coordinate with their landlords to sign up for ClearNow if they are interested in having rental information included in their credit file.

Experian collects this information every 24 hours, and houses it in its RentBureau database, which also assists other landlords in making tenant decisions.

A strong, positive rental payment history gives a boost to young adults who don’t have much credit because they can slowly demonstrate and prove they can be trusted with their financial management. A positive payment history can also help improve the credit scores of those with damaged credit due to the economy, a foreclosure, or other problems.

Presented by Shelter Mortgage

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