Editor’s note: This is a transcript of the audio file.
Until now, paying your rent on time didn’t help you build or establish credit. But one credit-reporting agency is changing that. I’m Janet Stauble with the Bankrate.com Personal Finance Minute.
Experian is one of the three major credit-reporting agencies. The company just announced that it began including positive rental payment history in its consumer files.
This means that renters can now build their credit by paying their rent on time each month. This is a win for millions of consumers, especially those with limited credit history, or no credit at all.
Given that one-third of the American population rents, Experian felt it was imperative to reflect the true creditworthiness of those who responsibly pay their rent.
For now, rental payment information will only appear on Experian credit reports.
And according to Experian, positive rental history is the new item being reported. The company could start adding late payment information to credit files in 2012.
To keep up with the latest credit information and learn more, visit Bankrate.com. I’m Janet Stauble.