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In previous articles, I have touched upon the issue of background checks, ways to prepare for looking for your next rental and credit reports. With some new changes, your credit report/score will work to your benefit if you rent. A news article Jan. 8th from the NY Times http://www.nytimes.com/2012/01/08/realestate/mortgages-a-good-rental-history-can-help-borrowers.html?_r=1&scp=1&sq=rental%20history&st=cse shows that Experian has already integrated positive rental history into their reports and  FICO, corelogic and the other credit bureaus are working on ways to add the data to their credit report/score. Experien will be adding in the negatives like bounced checks and leaving a lease early later in the year.

Credit scoreHow can it help?

  • Aids those with little to no credit history and improve your score
  • Benefits long time renters becoming first time home buyers
  • Assists those with a foreclosure to improve their credit with timely rental payments.

From the article – Incorporating rental payments into credit scores could affect millions of people who have not established credit histories through credit cards, student loan repayments and other credit sources. That includes recent college graduates, students and some divorced people.

This is great news from a landlord perspective, as it helps to give more of an overall picture of potential renters. In the past, they were only able to see how they paid their debt and had to rely on references for the rental history. Now, if the data from the prior landlord has been being submitted, it will be harder for them to change their story on a landlord reference backgroung check just to get rid of a bad renter.

At this time, the credit agencies are only gaining their data from the larger apartment management and property management companies. They are currently looking into ways to obtain the data from the small time landlord with only a rental or two.

From the article – …consumer groups and advocates are skeptical, noting that reports are sometimes riddled with mistakes and some landlord-tenant disputes may be difficult to capture in a credit report. Rent may not have been paid, for example, because the furnace was left unrepaired for months.

Credit bureau contact numbersConsumers will still have the means to dispute the data and to get inaccuracies corrected. They will soon have a way to add the rental data themselves by sending in to the credit bureau Experian documentation showing your timely payments.

Will you be one of the few who chooses to submit their rental payment information to improve your credit score? I’d love to hear your feedback.

Lori Hartjoy is the owner of Blue Mountain Rentals. Providing over 20 years of clerical experience to her clients. Her background in the rental industry includes processing employment, tenant screening, background checks and as a property manager.

The information contained on this blog and from any communication related to the Blue Mountain Rentals website is provided for informational purposes only. All information you choose to use is at “your own risk”.

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