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bvarbel

Reporting rent history to help build good credit

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While surfing the web I happened on a service provided by www.rentreporters.com. For $9.95 a month they will report a tenant's on time rent payment to the credit agencies. Their mission is to turn millions of renters into home owners by helping to build their credit.

 

This seems like something that can be used if you were particularly interested in seeing a tenant/buyer close. Also, it seems like an idea you could sell to a homeowner in a C/A who wants extra assurance the tenant/buyer is going to close. Its also a motivation for any tenant to pay their rent on time.

 

Have you guys ever used a service such as this? Its sounds pretty cool.

 

Brian

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Brian, I haven't used this service or any similar one. But I see where it can be beneficial to the t/b trying to build or rebuild credit, and as a selling point to a homeowner. Shop around for similar companies offer this type of service for prices and reviews.

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I did look at one company years ago, but don't remember who it was.

I contacted them but what they did is report the total amount that would be paid for rent for a year, and put that on the person's credit as an installment loan.

The problem with that, is once they do that, the score DROPS because now it appears as a new, fairly large loan of say...$14k or whatever. It will take several months for the scores to come back up.

Plus, installment loans aren't the big influence on positive trade lines that revolving accounts are.

They only reported to 1 repository as well.

Secured cards would be far far better, unless there is a company that is structuring it differently than what I just stated.

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I sent pilot's comment over to the company and this is what they replied:

 

Hi Brian,

 

The company that reported as installment loans was shut down as what they were doing was wrong and not compliant with FCRA rules. I believe their name was RentReporting.com so I understand the confusion.

 

We do not report as installment loans. We are totally FCRA compliant and report as an "open" ongoing type of account. The landlord shows as the creditor and the amount per month for rent shows as the recurring rent payment on the credit report.

 

Please let me know if you have any additional questions and I am happy to help.

 

 

 

Note, I am not endorsing this or any similar company...I just think that the concept sounds interesting and useful if they do what they claim to do.

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