Ms Nelson said reporting negative information could influence tenants who want to withhold rent to force landlords to maintain or repair buildings. If landlords report missed payments, tenants may feel pressured to make payments to avoid damaging their credit. A recent news reports It was suggested that it took place in New York City.
Zillow’s service considers payments on time if they are received within 30 days of the due date, said Amy Wipfler, senior product manager of social impact at the company. Payments made after that are not reported. The new service is available to “thousands” of renters, he said.
Currently, Zillow’s service only reports to Experian. If a participant applies for a loan with a lender that uses one of the other credit bureaus, there will be no impact on positive rent payments. Zillow aims to connect other credit bureaus, Ms. Wiffler said. (Other services, such as Asusu and Self Financial, report all three.)
Here are some questions and answers about using rent payments to help credit score:
Are all credit scoring systems able to take rent payments into account?
No, only the latest, but not yet widespread, version of data analytics company FICO’s credit scoring system can incorporate rent data, said Ethan Dornhelm, the company’s vice president of scores and predictive analytics. FICO version 8, an older but widely used model, may not factor into fares, he said. All versions of VantageScore, a scoring model owned by the major credit bureaus, are able to take rental payments into account, Sarah Cain, a spokeswoman, said in an email.
Is there a fee for rent reporting services?
It varies. Some services are free for both landlords and tenants, while others may charge a one-time or monthly fee. (Some are free for new rental payments, but charge a fee to report prior rental history.) It may not be worthwhile for consumers who already have a top-tier credit score to improve their can report the fare, as they will probably see incremental benefits from an even higher score. , said Ms. Johnson at TransUnion.
What are other ways to build credit?
If you have a very small credit file or bad credit, options for building credit include opening a “secured” credit card. You typically make a deposit and receive a line of credit up to that amount, and your payment history is reported to the credit bureaus. Some community banks and credit unions offer “credit builder” loans. The money you borrow is kept in a bank account when you make payments, which is reported to the credit bureaus. Once you repay the loan amount, you get access to the funds.