topic Re: Impact of (involuntary) Monthly Rent Expense/Payments on Credit Score? in Understanding FICO® Scoring

Impact of (involuntary) Monthly Rent Expense/Payments on Credit Score?

Fletcher2 — Tue, 04 Feb 2025 19:47:10 GMT

Could you tell me some of the negatives to having one's monthly rent payments reported to the credit bureaus and the impact such reporting would have on FICO scores?

(e.g., would having an astronomical monthly rental expense showing up as a brand new TL or however it is reported negatively impact debt-to-credit ratio? Would always be on time, so no fear of the negative consequences of not paying/being late...just wondering if it impacts such variables as average age of account, age of newest account, et al, once it's reported for the first time...and perceived negatives when it STOPS reporting. Woe is me.)

Re: Impact of (involuntary) Monthly Rent Expense/Payments on Credit Score?

FicoMike0 — Tue, 04 Feb 2025 21:53:20 GMT

How would your rent show up on your credit report?

Re: Impact of (involuntary) Monthly Rent Expense/Payments on Credit Score?

Thomas_Thumb — Wed, 05 Feb 2025 06:07:36 GMT

Fico 9, Fico 10 and Fico 10T include reported rental data in their scoring algorithms. A record of on-time rental payments should have a positive impact on credit score. DTI is not a factor in credit scores.

Reporting rental data is not legally required and most landlords don't report it. If a landlord doesn't report it, you can get it reported thru 3rd party services such as Experian Boost (EX only but free). Other for fee services that can add payment info to EQ and TU reports include PaymentReport and Rental Kharma.

If you have late rental payments, score is likely to be negatively impacted if payment history is reported.

P.S. VS 3.0 and VS 4.0 also are set-up to include rental data in their scoring algorithms.

Re: Impact of (involuntary) Monthly Rent Expense/Payments on Credit Score?

Fletcher2 — Wed, 05 Feb 2025 13:43:37 GMT

@Thomas_Thumb wrote:
Fico 9, Fico 10 and Fico 10T include reported rental data in their scoring algorithms. A record of on-time rental payments should have a positive impact on credit score. DTI is not a factor in credit scores.

Reporting rental data is not legally required and most landlords don't report it. If a landlord doesn't report it, you can get it reported thru 3rd party services such as Experian Boost (EX only but free). Other for fee services that can add payment info to EQ and TU reports include PaymentReport and Rental Kharma.

If you have late rental payments, score is likely to be negatively impacted if payment history is reported.

P.S. VS 3.0 and VS 4.0 also are set-up to include rental data in their scoring algorithms.

Thank you, sir. Good to know.

I have no interest whatsoever having it reported, but the PM company will begin reporting it soon (as a "benefit" to us, of course)...just trying to figure out the impact (and argue against it).

I can see any immaterial bump I might receive for paying rent on time being removed, and thus a decline in credit score, once it stops reporting, but I guess it's all moot at this point. But if it doesn't show up as a new TL/new account, impact the variables that really matter, I'll call off the dogs, I guess.

Thanks again!