Switching from renting to homeownership could get easier
Credit score calculations to change
Good news for renters: Mortgage lenders might start considering rent payment history in credit scores. In the current system, years of monthly payments to landlords do not show up on credit-bureau files. Per The Columbus Dispatch:
Why? Because the landlord, phone and cable companies, and many other creditors don’t report your payments to Equifax, Experian or TransUnion, the big three credit bureaus. In the all-voluntary U.S. credit system, they’re not required to report anything to anyone.
But here’s some good news: Two of the national bureaus — Experian and TransUnion — have begun incorporating verified rental-payment data into credit files where it can be included in the computation of consumers’ scores when they apply for a mortgage.