topic Re: Credit score - Rental payments in Understanding FICO® Scoring

Credit score - Rental payments

Anonymous — Sun, 02 Dec 2018 14:18:05 GMT

Hi everyone,

I’m trying to find out if my rental home payments can contribute to increasing my credit score - I heard of a couple companys like rental karma that submit this information to the bureaus for a fee - I also heard that home rental payments can actually work against you?

Trying to decide whether to go down that route or not?

Thanks

Re: Credit score - Rental payments

HeavenOhio — Sun, 02 Dec 2018 18:55:46 GMT

Most scoring models ignore rental payments. However, if you have no credit history at all, banks will see your payments as a positive. That could mean approval for an installment loan or an unsecured card rather than secured. In other words, your profile is helped even if your scores don't reflect it.

Including rental payments might also be helpful if your file is both very young and very thin. If your profile has more than a couple of accounts and they've aged a bit, reporting rent may do more harm than good.

Re: Credit score - Rental payments

Revelate — Sun, 02 Dec 2018 20:34:03 GMT

Some lenders are using alternative scoring when option A for them fails, and there's a big push in the financial markets to be able to lend to people who don't have a traditional credit report, so it might help.

Also since you have to declare on many / most applications in my experience what your housing payment is and if you rent or own, having the rental history there can't hurt is my thinking.

I wouldn't pay a fee to do it nor would I really worry much about it if I had a thick file already, but if I were a thin/new file and I could tack it on for free, I probably would.

Re: Credit score - Rental payments

Anonymous — Sun, 02 Dec 2018 21:25:45 GMT

Our OP has multiple credit cards and multiple loans... see post #1 in this thread:

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Credit-score-Best-option-to-increase/td-p/5422140

So he wouldn't fall in the unscorable group Heaven and R are thinking of.

Re: Credit score - Rental payments

Anonymous — Sun, 02 Dec 2018 22:25:42 GMT

Ok thanks, I think I’ll just add the rental payments, I’ll call rental karama on Monday...

Re: Credit score - Rental payments

Anonymous — Sun, 02 Dec 2018 22:27:05 GMT

Thanks - It Costa around $25 + $7US per month, I’ll only need 6 months... its not ideal having to pay, but if it helps me get a history and a mortgage with a better rate, i think it’s worth a try...

Re: Credit score - Rental payments

Anonymous — Sun, 02 Dec 2018 23:42:33 GMT

I think you should hold off on paying money to add rental history. Take another week to talk to us about it. Adding rental history will not alter your FICO mortgage scores.

Given the fact that you have multiple cards and loans, you are not an unscorable consumer. Furthermore, if you simply do as you plan (in the other thread on which you are getting advice) -- which is to pay all cards to zero except one with a small balance -- you should have a decent mortage score. If a lender really wants to consider your rental history (improbable given that you will already have decent mortgage scores) you can supply that lender with the rental documentation at that time.

Re: Credit score - Rental payments

pamon — Tue, 04 Dec 2018 06:19:05 GMT

Ive had rental kharma for 6 months and paid for 2 years reporting. But it only reports to transunion. There are ones that rsport to all 3 but mine is a smaller place so wouldnt work.