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Rent payments now appear on Experian credit reports

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Thu, 02/17/2011 - 18:34
frazzledmom's picture
frazzledmom
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NEW YORK (CNNMoney) -- For those of you without credit cards or mortgages, there's a new way to build your credit: Pay your rent on time.

In January, credit reporting agency Experian started including residential rental payment data on its credit reports. Previously, only mortgage payments were recorded because banks report monthly to the credit bureau.

This change will not, however, affect every consumer's credit because most landlords still do not report payments to Experian. But the company does expect the number of people impacted to be in the "low millions."

I think this is a good idea!

http://money.cnn.com/2011/02/15/pf/saving/experian_credit_report_rent/in...


 
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Tue, 03/22/2011 - 19:08
#1
greenmachine's picture
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Re: Rent payments now appear on Experian credit reports

I think so too. It gives renters that pay on time every month the chance to improve their credit. Of course that depends on how lucky you are with your landlord and if they are willing to report it. You would think they would band together because it helps all landlords if they can check up on potential renters more closely.


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Tue, 03/22/2011 - 20:29
#2
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Re: Rent payments now appear on Experian credit reports

I imagine it's only good for consumers if you pay your rent the way you're supposed to and don't get into arrears. Again, any new landlord wins because he would see that on their report. Of course the old landlord may deliberately not report it so he can get rid of them when they move elsewhere! Oh what a tangled web we weave. :)


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Thu, 03/24/2011 - 22:46
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Re: Rent payments now appear on Experian credit reports

I don't know why this didn't happen decades ago. It would be an excellent guideline for mortgage lenders too if they knew how you handled paying rent. The number of foreclosures wouldn't be as sky high today if banks were more careful with their lending limits, especially for first-time mortgage customers.

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Fri, 03/25/2011 - 23:08
#4
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Zoey
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Re: Rent payments now appear on Experian credit reports

pennywise wrote:

I don't know why this didn't happen decades ago. It would be an excellent guideline for mortgage lenders too if they knew how you handled paying rent. The number of foreclosures wouldn't be as sky high today if banks were more careful with their lending limits, especially for first-time mortgage customers.

 
I agree. Giving out a mortgage to first-time buyers is a risk and usually that's a young couple too. Newlyweds don't often have much credit on record and banks need to keep their fingers crossed based they will be okay. I think this is a good move.


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