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It Is Now Easier To Move From Renting To Homeownership

By
Real Estate Agent with Keller Williams Realty CT - 860-704-9070 REB0790003

 

Using Rent To Build Credit

 Build credit using rents paid

It's is hard to understand why one of the largest expense most Americans have before a home purchase is not considered credit history.  For those renters that want to someday own a home, there is now the option of including your rental history to your credit report, according to a recent Business week article.

Can Paying your rent build credit?

 

In a study, Rent Bureau tracks apartment rents from large property managers which focused on almost 20,000 people in government-subsidized housing who pay their monthly rent on-time.

 

 

 Pay your rent Build credit

Prior to adding in rental history, to these renters’ report 11 percent of the sample had no credit file at all. Once the rental history was added in, 59 percent of that group had prime credit scores, and another 38 percent had “non-prime” scores. Just 3 percent were considered “sub-prime.”

 

 

Presently two of the three major credit bureaus (TransUnion and Experian) have begun including verified rental payment data into credit files. This data can be included in the computation to renters’ scores when they apply for a mortgage.

 Find a local real estate agent to help

Adding rental history to credit scores will require renters being vigilant in enduring that reporting companies are reporting their data accurately.

 

 

Need Help with Home LoanFor the over 33% of Americans who are renting, this is great news for those whose aspirations is to own a home. Finally the money they diligently pay to their landlord can help improve their chances of someday owning a home.

 

 

 

If you a considering buying a home, please contact me before you make any important real estate decisions.  Call 860-704-9070 or email me at stacystephens@kw.com 

 

 

 

 

 

 

 

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     CT Real Estate Agent - Stacy Ann Stephens

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