Experian RentBureau, one of the big three credit bureaus, recently began collecting data about consumer rental payments and including that data in its credit reports. Many see this as a positive step, particularly for those who are credit-worthy even if they don’t yet have traditional forms of credit, like credit cards or mortgages. Before this change, a lot of responsible people who don’t have a lot of credit were left at a disadvantage. Now their rental payment history can help boost (or lower) their credit scores.
Still, there are some skeptics out there. Some point out that RentBureau’s database only covers about 8 million renters. That’s just over one-fifth of U.S. rental households, which is estimated at about 39 million. That leaves a ton of renters still at a credit disadvantage, even among their renting peers.
Others say reporting information on rental payment history may have a negative effect on low-income families struggling to pay the bills during the current recession. If an individual’s scores dip after a few late rent payments it’s not necessarily because that tenant is suddenly irresponsible, but because the economy is making it difficult for anyone to make ends meet.
As with any issue pertaining to credit reports, there are always two sides to a story. That’s why it’s important to stay on top of one’s own credit score, to know where you stand with creditors and lending agencies, and to dispute any inaccuracies.
Follow ATS on Twitter!
No comments:
Post a Comment