Having positive rent payments reported to Experian can be incredibly helpful for people who are trying to build their credit history for the first time or who are recovering from difficulties.
You need to have a credit history before a credit score can be calculated. If you don't have a credit history, reporting your rent payments can help you establish a credit report.
If you already have a credit history but have had some difficulties in the past, on-time rental payments can help your credit recover more quickly.
By incorporating on-time rental payments into your Experian credit reports, you are demonstrating to lenders that you are successfully managing your financial obligations. Depending on the credit scoring system used, your on-time payments may be included in the calculation.
An Experian study found that reporting positive rent payments helps credit scores and can even allow renters who may otherwise have little or no credit history to receive a credit score for the first time.
Any landlord can report their tenants' positive rent payments regardless of whether they have a large apartment complex or a single unit.
Check with your landlord to see if they currently report on-time rental payment information. If they don't, go to www.experian.com/buildcredithistory to learn how your landlord can report your positive rent payment to Experian.
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Scoped on: 1/11/2018