If you’re renting an apartment from a small-time landlord it is unlikely that paying your rent will improve your credit score. Credit scores are usually tracked and reported to by financial institutions, but over the past decade there have been moves to allow other types of payments, including rent, to be reported and improve a credit score.
Though this is possible these days it is not possible for a landlord with only a few apartments to send in information to a credit bureau because they don’t meet a minimum requirement that Transunion, Equifax, or Experian require.
This is where TrustedRentr comes in! Since we are handling payments and applications for many landlords at once we are able to send in this information to the bureaus without any problem, giving many more tenants an opportunity to improve their lives. Around 75% of landlords manage their own properties which means that their tenants are missing out on a great possibility. By applying and paying rent through TrustedRentr we make sure that your rent payments get counted.
When a college student is renting and has very little credit history this can be a huge advantage. Renting for a year and getting those payments sent in to a credit bureau could see a score increase by as much as 75 points! If you were to do this over the entire time while renting and being in college the benefits would be even greater.
These benefits aren’t only for college students, however. Many people just don’t like taking out credit cards, car loans, or other types of debt, and because of this they won’t have a substantive credit history. This means that even though they are financially responsible and never miss payments, banks don’t have a clear picture of how they handle debt, and will either deny a loan or increase the interest rate. If this person was looking to buy a home after working hard to save up after many years, a higher interest rate could mean thousands more dollars paid over the term of the mortgage.
If you’re a tenant that always makes your rent payments, there is no reason why your responsibility should help improve your future.