Credit is king in America. A credit score identifies eligibility for even the most basic requirements of life, including real estate. Having a healthy credit score requires years of credit, combined with elements like positive payment history and low credit utilization.
However not everybody has a score. The Consumer Financial Protection Bureau (CFPB) approximates that about 26 million Americans are credit unnoticeable, meaning they have no credit history at all. There are multiple factors contributing to this trend, consisting of inadequate credit report.
Getting a credit rating established can be tricky, though. If you require a history of credit to get authorized for credit, how do you even start? There are some tricks out there to make it simpler. One is to start with a secured credit card. Another is getting rental payments included in your credit report.Summer Closeout Sale! Outdoor Up to 40% Off*, Beds Under $300 and Dining Starting at $100 on Select Items Only + 12 months special financing††.
How Rental Payment Reporting Services Work
You can’t report rental payments to credit bureaus yourself, but all 3 of the major bureaus will accept your rental payment information from a third-party servicer. Experian, for example, receives rental payment information through Experian RentBureau, and updates its database every 24 hours from property management business and electronic rental payment services throughout the country.
Landlords can report payments to third-party platforms for the reporting. This additional service will submit your rental payments to credit bureaus, frequently (but not constantly) for a charge.