Food for thought... Rental payment histories may count in credit scores NEW YORK – July 2, 2014 – Renters who have never made a late rent payment often find that their stellar record doesnt do anything to lift their credit scores when its time to shop for a mortgage. But that may soon change: Two of the main credit reporting agencies, Experian and TransUnion, are reportedly starting to incorporate verified rental payment data into credit files and using it as part of a consumers credit score. At a time when record numbers of first-time buyers are missing in action in the home-purchase market – many of them in part because their credit scores dont make the grade – the non-reporting of key credit records is costly to them and the economy as a whole, The Columbus Dispatch reports. Some other companies are also stepping in to ensure renters get their on-time payment histories included in a mortgage application. ECredable, an alternative credit data company, says it will verify renters payment histories that havent been reported to the major credit bureaus, and then generate a credit report and score. It encourages potential homebuyers to present the report to mortgage loan officers and ask that the information be considered in their application – which the lender must do under federal credit regulations. Source: Credit Scores Might Soon Reflect Rental Payments, The Columbus Dispatch (June 29, 2014) © Copyright 2014 INFORMATION, INC. Bethesda, MD
Posted on: Wed, 02 Jul 2014 18:51:41 +0000
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