Homeowners’ credit bureau thinks paying rent on time should count towards a positive credit score, and they are doing it
(ProNewsReport Editorial): – Toronto, Ontario, Aug 3, 2021 (Issuewire.com) – Many renters have been victims of a similar story – they are stuck renting because their credit is not good enough to buy a house, and they’re having a hard time getting a better credit score because the majority of their income goes towards their rent. Fortunately, Landlord Credit Bureau CEO Zachary Killam is helping tenants improve their credit by working alongside Equifax (one of the three credit bureau giants) to include rent payments as part of the rental process. credit assessment.
Homeowners’ credit bureau doesn’t just help homeowners
Both landlords and renters get a lot when rent counts for credit reports. Landlords have a better idea of who is best for their rentals, and tenants can show they are responsible and able to pay their rent on time.
Helping young tenants to prove their reliability
Young people who haven’t had time to build a credit history can sometimes struggle to get their leasing applications approved. This is a trap for younger tenants: they struggle to increase their credit score because they don’t have a credit history, and they struggle to develop a credit history because their credit score is low. is not high enough to get credit.
The homeowners credit bureau is changing that.
In conjunction with Equifax, Landlord Credit Bureau helps anyone who rents a property – and pays on time – with their credit score. This allows young tenants and those who have stumbled upon difficult financial times to increase their credit rating through the declaration of rents.
How the Homeowners Credit Bureau is Helping New Tenants Across the Country
Moving to a new country comes with many challenges, including finding a place to live. Many people who move to the United States or Canada for work or family reasons find it difficult to obtain credit due to a lack of credit history in their new home country. This presents a difficult problem to overcome: people in this position find it difficult to obtain credit due to a lack of credit history, but also cannot establish a credit history without a credit card or the like. type of loan experience.
The Homeowners Credit Bureau helps new tenants across the country build a strong credit history by allowing their rent to appear on their Equifax credit score. This allows potential lenders to have strong credit histories, thereby helping newcomers to the United States and Canada work towards a healthy financial future.
Why Rent Reports are Important
For many people, rent is the biggest payment they owe each month. Financial advisers often recommend that tenants spend about 30% of their income on rent each month. That’s way more than most tenants can afford to spend on credit cards, student loans, and other forms of debt.
“We should give consumers credit to pay their rent on time,” said Landlord Credit Bureau CEO Zachary Killam.
When landlords can see rent paid on time, month after month, they can see credit worthiness beyond a score only associated with paying credit card bills and loans on time.
Other ways for young tenants to improve their credit rating
While reporting rent to the Landlord Credit Bureau is the best first step in improving credit scores, there are additional steps young tenants can take to build their ratings over time, including:
- Get a low-interest credit card and pay off the balance in full each month
- Regularly check credit scores and report / dispute any discrepancies so that it can be corrected
- Work to pay off all collection accounts, even if payments need to be made bit by bit
While improving a credit score can be hard work, it is well worth it. Working with Landlord Credit Bureau is a big step in the right direction for those who want to improve their scores.