[Voice of Bankrate.com reporter, Kristin Arnold]
Take VO: Looking for a way to establish or boost your credit history? Well, just paying your rent on time can now enhance your credit score.
Experian, one of the three major credit reporting bureaus in the U.S. is now incorporating positive rental-payment history data into credit reports.
[Voice of Jessica Cecere]
Take SOT: Jessica Cecere, President of CredAbility/Palm Beach-Treasure Coast
(:32-:44)
"That is excellent news, especially for…I would say… for young consumers because generally that's all they have…maybe a car payment and what they pay on-time for rent each month. So, that's a real positive step in the right direction."
[Voice of Kristin Arnold]
Continue VO: For decades, the only time an apartment rental account would show up on credit reports was after the property management company sent it to collections as a negative account.
According to the Experian website…the benefits of integrating rental payment data into credit products will enable formally underserved consumers to build a stronger credit history and thus give them better access to credit under more attractive terms. So, why is this credit rich information just now being reported?
[Voice of Jessica Cecere]
Take SOT:
(2:57 – 3:15)
"But it seems to me that someone should have definitely looked at this many…many years ago. I also think that more people are renting right now because of the whole housing crisis. So, that's probably sort of what steered somebody in that direction…to say "hey, wait a minute why aren't we reporting rental information that's positive rather than just negative?"
Continue VO: Currently, only about 8 million renter's data is being reported…and that only really represents a very small portion of the estimated 96 million renters in the country. Cecere believes the two other credit reporting agencies, TransUnion and Equifax will follow suit.
TAG: To better understand your credit history and how it affects your financial health….visit Bankrate.com. I'm Kristin Arnold.