Credit Reporting Companies May Begin Incorporating Additional Debts In Their Credit Score Models

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

Credit Reporting Companies may begin incorporating additional debts in their Credit Score Models.  An example of this is Experian, one of the three major Credit Bureaus start to incorporate rental payment history in their Credit Score Model.  If Experian has started to do this, the other two major Credit Bureaus, Equifax and TransUnion can’t be far behind.  This means that a Renter’s rental history is going to play a much bigger role in their future ability to purchase a home.   Experian is also planning to add bounced checks and tenants leaving before their lease is up. 

If incorporating additional debts into Credit Scores like nontraditional loans, child support, utility bills, and cell phones becomes a trend, then we will see a much greater impact on Credit Scores in the future than we do today.  This could be a major advantage to people who do not have debts that are presently used to obtain Credit Scores by the three major Credit Bureaus.   Historically Credit Scores have mainly been based on Mortgage Payments, Student Loans, Car Payments, and Credit Cards.  If a potential Homebuyer does not have any of these types of debts, then they most likely do not have a Credit Score, and will have a very difficult time purchasing a home. 

But if now Credit Bureaus begin to incorporate rent payments, nontraditional loans, child support, utility bills, and cell phones into their Credit Score Models, then possibly millions of people who presently do not have Credit Scores will have them in the future.  The negative would be that once those additional debts are included they could also cause Credit Scores to go down if those payments are not made.

I have not seen any of these additional debts being reported yet, but if I begin to see them being report on Credit Reports, I will report it.



Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308, or visit my McCue Mortgage Homepage.


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George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or


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  1. Emily Medvec Qualifying Broker 01/13/2012 02:40 PM
Lending / Financial
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Jo Olson
HOMEFRONT Realty - Kettle Falls, WA
Retired - HOMEFRONT Realty @ LAKE Roosevelt

I think the whole credit score system should be revamped - it an be so manipulated as it is.  Thanks for bringing this new information to light.

Jan 12, 2012 03:28 PM #1
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

That doesn't sound right or a good thing to me to include everything. Makes me wonder what it is going to look like in the long run.

Jan 12, 2012 03:29 PM #2
Ron Cooks
The Real Estate Marketplace - Killeen, TX
Texas Real Estate, Ft Hood/Killeen Homes for Sale

Great post George! Nowadays besides keeping an eye on your investments, the other eye must stay on the bureau's.

Jan 12, 2012 03:33 PM #3
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

George - Thank you for sharing detailed quality information on credit reporting companies may begin incorporating additional dept in their credit score models.

Jan 12, 2012 03:44 PM #4
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I have been reading about this possibility for a number of months. I don't see these additional items helping most people. Certainly in some case it would help, when folks pay for some obligations by cash.

Jan 12, 2012 11:45 PM #5
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA

Reaching out to landlords who have made credit inquiries for tenant prospects is KEY in giving a GOOD and CLEAR picture of debtors' handling of their credit priorities!

Jan 12, 2012 11:49 PM #6
Emily Medvec Qualifying Broker
Hello Realty - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

This appears to be the new landscape of mortgage financing and credit. One of our lst time home buyers could not qualify for FHA financing due to a low credit score attributed to an unpaid debt related to rent and cell phone issues. It would be helpful if the credit card companies were required to notify people of these changes. At least, you are here. Thank you.

Jan 13, 2012 01:18 PM #7
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