Rent Payments Can Now Impact Your Credit Reports!

Experian recently purchased Rent Bureau in the US, one of the largest rent payment database companies in the US. Experian has begun to include rent payment data in its consumer credit reports. Experian claims to be the first credit reference agency, also known as credit bureau, to be offering this. Transunion another US credit reference agency, provides this type of data to landlords, but this is first time it is included in the standard consumer credit report.

With home ownership at low levels in the US this is a timely development.

This important as it marks a change of direction, which may then impact credit report content in the UK. At the moment in the US and UK, credit reports, contain information on credit arrangements including, loans, credit cards, mortgages, mobile phone contracts, current accounts. It also includes data on late payments.

How Could Rent Payment Data Impact your Credit Report?

Previously rent payment history would only have been considered if the payment was late and went to a civil court payment or eviction. Experian now will show potential lenders if you regularly pay your rent payments on time, which is great news for those without any credit history, new to credit such as young people/students or those people attempting to improve their credit report, and credit score, with bad credit for example.

Basically this could be a positive factor in your favour, great if you do not have many credit arrangements. However the flip side is you do not pay your rent on time, this could now be used against you for credit applications, so it is worth bearing in mind, that being late with any rent payments can count against you, when applying for any credit.

Rent Bureau only covers 8 million renters, which is important if you were thinking this would help you straight away, as you may not be included in this.

Experian has a range of credit check reports options which consumers can access instantly and online. Experian is one of the largest credit bureau's in the US in addition to Transunion and Equifax.