NEW YORK – July 2, 2014 – Renters who have never made a late rent payment often find that their stellar record doesn’t do anything to lift their credit scores when it’s time to shop for a mortgage. But that may soon change: Two of the main credit reporting agencies, Experian and TransUnion, are reportedly starting to incorporate verified rental payment data into credit files and using it as part of a consumers’ credit score.
At a time when record numbers of first-time buyers are missing in action in the home-purchase market – many of them in part because their credit scores don’t make the grade – the non-reporting of key credit records is costly to them and the economy as a whole, The Columbus Dispatch reports.
Some other companies are also stepping in to ensure renters get their on-time payment histories included in a mortgage application. ECredable, an alternative credit data company, says it will verify renters’ payment histories that haven’t been reported to the major credit bureaus, and then generate a credit report and score. It encourages potential homebuyers to present the report to mortgage loan officers and ask that the information be considered in their application – which the lender must do under federal credit regulations.
Information and article from – http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=310339