RentTrack, a way to improve a FICO Score?

[Anonymous]

My landlord (Realtor) has offered a new option to pay rent called RentTrack, a free service that basically automates their rent payment.  The main value proposition they offer is it is a way to improve your FICO scores because they report to all three credit agencies.   We will be buying a home in a 12-24 months so it seems like a good idea to have ontime rental payments recorded.  Any thoughts on if this is a good idea or not?  

[Anonymous]

A little research shows that most of the FICO versions are not impacted because rental contracts only is a factor in the Vantagescore V3.  

[Anonymous]

Depends on how the company reports. I used one call Rent Reports, it made my FICO 08 go up by 9 points. It got reported as an unknown loan type and added 2 years of history all at once, so YMMV.

[Anonymous]

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@Anonymous wrote:

My landlord (Realtor) has offered a new option to pay rent called RentTrack, a free service that basically automates their rent payment.  The main value proposition they offer is it is a way to improve your FICO scores because they report to all three credit agencies.   We will be buying a home in a 12-24 months so it seems like a good idea to have ontime rental payments recorded.  Any thoughts on if this is a good idea or not?  

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This does not appear to be a a free service.

http://help.renttrack.com/knowledgebase/articles/300764-why-is-there-a-technology-fee

Services like RentTrack are chiefly of value to people who have no credit cards.  You appear to have fifteen.  If you have no open installment loans, I'd implement the Share Secure Loan Technique now.  Otherwise just continue to use your cards naturally and stay in the garden.

[Anonymous]

I recently signed up for this service and paid my first month's rent through this company for the month of December.  Of course it hasn't appeared on my credit report yet but I was wondering if you signed up for the service and how your results have been credit wise.

[Anonymous]

Which flavor of FICO Score?

FICO Score 8 does not include rental data at all.  Neither do most FICO scores.

But FICO Score XD does.  http://www.fico.com/en/products/fico-score-xd

I've never heard of a lender who uses FICO Score XD, though.  It's an interesting product with no market.

The reason that most flavors of FICO Score don't score rental data is because historically the only data posted is negative, which means they have no basis for positive scoring analysis.  FICO Score typically wants to see data that is both positive and negative so they can properly calculate risk.  This Forbes article discusses the dilemma more.

[Kree]

My rent tried reporting as a revolving account with 0 credit and a high balance of 1720 each month.

I quickly told them nope, get off of my report.

I don't remember specific points variance, but I have a thick profile with lots of age, and lots of utilization room so it wouldn't have effected me much.

But for young/thin credit it would have probably been a major downer.

EDIT: I should note at the time one of my cards was <90% so the high utilization for rent shouldn't have made a difference on that factor.

[arkane]

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@Anonymous wrote:

Which flavor of FICO Score?

FICO Score 8 does not include rental data at all.  Neither do most FICO scores.

But FICO Score XD does.  http://www.fico.com/en/products/fico-score-xd

I've never heard of a lender who uses FICO Score XD, though.  It's an interesting product with no market.

The reason that most flavors of FICO Score don't score rental data is because historically the only data posted is negative, which means they have no basis for positive scoring analysis.  FICO Score typically wants to see data that is both positive and negative so they can properly calculate risk.  This Forbes article discusses the dilemma more.

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In other words, a solution in search of a problem. Or in other other words, we gotta give these people something to do so they'll keep their jobs. 

Just kidding of course, I'm always amused by the many flavors of FICO and how it keeps evolving. 

[Anonymous]

Well, I monitor TESS for certain keywords so I am always on top of new developments.

BTW, the best TESS search result I ever got in my life was this month.  See this link and lol.