If you’re a renter, applying for any type of financial service can be frustrating. But did you know that your biggest monthly payment can boost your credit score and help you get that home or auto loan you needed? Learn more at https://www.rentalkharma.com/
Renters are denied many opportunities to build wealth, which can put them in a disadvantage in the home and auto market. If you’re a renter, you’re probably too aware of this fact, especially if you’ve tried to apply for home and auto loans. But what if your rental payments could actually be used to your advantage? It’s not a pipe dream - on-time payments to your landlord can actually be added to your credit report to boost your score. And if you don’t know how to do that, a good rent reporting services can really help you out.
Nearly 49 million Americans don’t have a credit score: 53% of these individuals have nothing on file with Equifax, TransUnion, or Experian, while the other 47% are considered “unscorable” because there is too little information available on their profile. Americans who fall into either category may have difficulties qualifying for loans, face higher security deposits, or encounter problems with car rentals and other services requiring down payments.
Renters make up over a third of America’s population, but they often do not report their rental payments to credit bureaus, losing opportunities to develop their credit profile. However, industry experts say that payment history is the most important factor in determining an individual’s FICO Score, which is the measurement of creditworthiness most commonly used by lenders. Rent reporting services, such as the ones Rental Kharma offers, can therefore be used to bolster an individual’s credit score, as long as the individual has a record of on-time payments.
“Over 100 million Americans struggle with their credit and are denied access to traditional non-predatory financial products,” says an expert with Rental Kharma. “However, rental payments are a sustainable and simple way for renters to establish and build credit history through their largest monthly payment.”
Rent reporting services aren’t a magic bullet that will increase your credit score overnight, but they will give you a much-needed boost if you happen to be one of the Americans without a credit score to begin with. Adding a long list of on-time rental payments to your credit report can make you go from “unscorable” to “scorable” very quickly - this is, in fact, what happens to up to 9% of renters who begin reporting their rent.
If you’re young and don’t have a student loan, you may also find measurable benefits from using a rent reporting service.
On the other hand, if you already have a long and established credit history, rent reporting services will likely only result in a small increase to your score, so you may want to look at other methods of improving it.
When choosing a rent reporting service, there are some things you should keep in mind, such as what’s being reported, who’s receiving your information, whether you need verification from other parties, and total cost of the services. It’s important to note that rent reporting can do your credit score more harm than good if you have any late or missed rental payments, so make sure you know what you’re getting into before you enroll for any service.
But if you’ve been timely about your rent, then you probably don’t have as many things to worry about. In fact, the more rental payments you’ve had, the better. Rental Kharma is one service that will help you retroactively report every payment you’ve made to your landlord, even if your current lease began over a decade ago - this will give your credit profile a big boost, especially if it’s a little thin.
Don’t let rent be your ball and chain when you can use it as a tool to grow your credit history. Add your rental payments to your report and start boosting your score today. Rental Kharma City: Cookeville Address: 225 South Jefferson Avenue Website: https://www.rentalkharma.com/ Phone: +1 931 500 1482 Email: support@rentalkharma.com