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09-13-2017 10:41 PM
The title is self explanatory. I didn't even know this was reporting until i went over my reports and noticed my mortgage scores had decreased. I looked over my reports as i knew what my score was after the initial inquiry and it has been 5 months since the application and bam a new installment account was listed with Re/max. I didn't want them to report and it is more beneficial for them not too. Has anyone had this happen and is it fairly easy to get them to delete the account after the lease is up? I like having positive accounts but i need all the points i can get for a mortgage in 6 more months.
09-14-2017 06:52 AM
I have one tradeline listed on my Experian report for a lease I had with an apartment years ago. It just showed up recently although I have not lived or lease an apartment in over 9 years.
09-14-2017 07:08 AM
So it reports as an installment loan? How does it work, basically 12 months of rent is the starting balance and that goes down by 1/12 each month?
Great question, BBS. Rhall2009, can you tell us more about the details of how it is reporting?
A few more questions:
Is the rent account appearing on all three reports? (TU, EX, and EQ)
If so, has your mortgage score dropped at each one? (Not FICO 8.) When were the last two times you saw your mortgage scores? Is there anything else that could explain the drop? For example, do you have more credit cards showing a positive balance now than you did before? How much of a scoring drop is it?
Do you have any other installment accounts?
If so, could you tell us the current amount owed and the original amount of the loan for each one?
09-14-2017 07:56 AM - edited 09-14-2017 07:57 AM
OP, which service are you using to monitor your reports? Is it possible that this account isn't actually reporting as an installment loan but that the monitoring service simply doesn't know where to put it?
Using one of my accounts as example, my gas/electric bill reports monthly and shows up on TU and EX. myFICO lumps this account into my revolving accounts for TU and as an installment account for EX. However, when looking at the details, in both cases the "loan type" is "unknown."
What's definitely happening is that this acocunt lowers my AAoA. Maybe AAoA and AoYA (age of youngest account) are the reasons for your score decrease.
09-14-2017 02:55 PM
I have about 8 installment loans between student loans and auto loans. I just pulled my scores on the 12th from here at myfico. It's only showing on my experian report which of course is my middle score. I pulled my mortage scores back in may to track where im at scorewise. It's showing as an installment loan no high balance showing a decrease. its just saying the monthly rent amount due monthly.
09-14-2017 02:59 PM
as far as credit cards i just went from 2 reporting down to 1 reporting a small balance keeping me at 1% utilization. I have 7 credit cards total. My mortgage score dropped 10 points. My fico 8's are actually on the rise
09-14-2017 06:58 PM
If it is hurting the credit score, maybe it is wisely to contact the leasing agency/buidling manger, etc. and ask them to stop reporting to credit bureaus and remove the corresponding account or contact the credit bureaus and correct the account type, if possible for them. Note that usually reporting the monthly rent to the credit bureaus should not be mandatory for them. This means that if they don't report it to the credit bureaus, it should be difficult to push them to do it.
For my prior apartment, the leasing agency was using payyourrent.com and the monthly payments were reported to EX. EX was treating this account not as a "revolving" account but as "other". Therefore, I did not see any change in my Fico8 score. Maybe adding such account would help other versions of Fico score.
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