We have received several inquiries about how rent payments are being
reported and reflected on your credit report. To help answer some of
your questions, please refer to the information below courtesy of
Experian Credit Bureau.
In December 2010, Experian became the first credit reporting agency
to include positive rental payment histories on its credit profiles.
Information is collected by Experian RentBureau and with this data,
millions of Americans can build or repair their credit scores. Simply
by paying their rent on time, responsible renters should get credit for
managing their rental payments and also may now have the opportunity to
gain access to mainstream credit products they deserve.
Experian has partnered with property management companies across
the country to offer renters this unique opportunity to build credit
through consistent on-time rental payments and create an opportunity for
consumers to have a positive credit history. In order for this data to
be included in your credit file, your property management company must
contribute its rental history to Experian RentBureau. As your current
property management company or any apartment community you are
considering living in if they contribute their data so that you get
credit for paying your rent on time.
Frequently Asked Questions
Why type of rent information is on my credit report?
Only positive rental history has been added to your credit report.
If available, it will display the 25 most recent months of rental
payment history information. No derogatory information will be
displayed because any negative rental information, such as collection
amount, is already reported through collection agencies.
How will Lenders use my rent information?
Lenders may use your rental obligation as one of the factors when
determining your ability to pay any new debt. Because your rental
payment history is now part of the standard credit reports, it may also
be incorporated into credit scores used by Lenders to make
credit-granting decisions. Each credit grantor decided what standards
you must meet for it to grant you credit.
Will my rent payments affect my credit score?
Because your rental payment history is now part of your standard
credit report, it may be incorporated into certain credit scores. This
will allow many who previously didn't have credit to become "scoraeable"
for the first time and begin building and rebuilding credit through the
responsible payment of rent.
Why are my payments not on my Credit Report?
In order for your rental payment history to show up on your credit
report, your property management company must submit your payment
information. You can refer your property management office to
Experian's RentBureau at
www.experian.com/rentbureau/rental-history.html.
Can I submit my own rental payment information?
No, you cannot report your own rental payment history. Only property management companies can report rental payment data.
Why does my rent appear as an Installment Loan?
Your rent is intended to be similar to an auto lease, which is
considered installment credit. Installment credit consists of paying
regular installments of a fixed amount over a set period of time,
usually measured in months or years.
Why does my credit report show a credit limit for my lease when it is not a line of credit?
Experian calculates an "original loan amount", which represents
the sum of the total payments over the entire period of the lease
agreement. For example, a 12-month lease with a $1,000 monthly rent,
would add up to $12,000 (12 months x $1,000).
Why does my credit report show any outstanding balance for my lease when I don't owe any money?
An outstanding balance or current balance amount on your rental
payment history represent the sum of all rental payments left on the
lease. The balance denotes the total amount for which the consumer will
be responsible over the remainder of the lease. As you pay your rent
each month, the outstanding balance will continue to decrease.
For more information about rental payments on your credit report, visit the
Rent and Credit Section in the Experian website.