Mortgage

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.

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