Rent Payments May Now Improve Your Credit Score

There are close to 44 million renters right now in the United States.

That's according to the Joint Center of Housing Studies for Harvard University. 

The Fair Credit Reporting Act (FCRA) now allows credit reporting agencies to factor in rental payments to improve credit scores.

Freddie Mac announced a partnership in early November 2022 with Esusu, a company that works with property managers and renters to report rental payments to credit bureaus as a way to improve credit scores. 

To incentivize landlords, Freddie Mac is giving closing cost credits to owners who purchase multifamily properties. There are other incentives for current landlords which are detailed on the Esusu website.

This new program is a game changer for renters who want to buy a home. Having the opportunity to raise credit scores by making rent payments on time, will improve their ability to secure a home loan.  

Learn more about Esusu and the Freddie Mac partnership in the article at HomeBuyerBrokerage.com