Homeowners tend to build credit with mortgage payments, but this is not the case for renters. It can be really painful when you pay your rent on time, and you don’t get that added to your credit report, especially if you're looking to get a loan in the future. Many credit scoring systems do not consider rent, and the few times when it is even considered, the rental payments usually don’t get reported. As it is not reported, renters don’t have the opportunity to build their credit reports for credit scores. The implication of this is that with a low credit score, you have lesser chances of a credit card or loans from lenders. You cannot report your rent by yourself. So, is there a way out of this?
Rent reporting companies like RentReporters claims to help to solve this problem by reporting and informing creditbureaus about rental payments made by a tenant so that the information will be added to that person’s credit report, which ultimately builds their credit score. Rent reporting companies are especially beneficial to people who pay their rent on time, have a low credit score, and have been staying at a particular location for a long period. To read experience and feedback of people who have patronized RentReporters, check LuminaBlog.
RentReporters is a rent reporting company founded in 2011, based in Pasadena, California, USA. It is a rent reporting company that automatically reports rental payments made monthly to the credit bureaus to improve your credit score. When your rent is reported, all the major credit bureaus (Equifax, TransUnion) will include this in your credit report once they receive it. This credit report provides data for credit scoring, and credit scoring companies like newer versions of FICO and VantageScore use this information.
Services of RentReporters
RentReporters works by first verifying with your landlord that your rent was paid. It further claims to report the payments to TransUnion (a major credit bureau), and then you continue to pay your rent to your landlord in the same way you’ve always done, and you’ll have to pay a fee after you’ve initiated the request. In cases where your landlord doesn’t cooperate, RentReporters will give you a full refund.
RentReporters will report two years of rental payments to the credit bureau, and even if you’ve not been at your current place for a very long time, you can add rental payments to your past landlords at an added cost.
You need your contact information, the date you moved into your apartment to sign in. RentReporters will need your social security number as well, and they claim to use bank-level security to protect the personal data of their customers. Your rent payment will then appear on your credit report within few days, after which RentReporters eventually sends an email with your new credit score.
To set up an account, you'll pay $94.95, and then each month, you'll pay $9.95 for ongoing reports. To add previous landlords' rental payment, you'll have to pay $50. You can also pay with your debit or credit card. You can decide to pay for a year of service. It’ll cost $214.35.
For more information about RentReporters, you can go through their website or social media handles.