Renters of all ages and circumstances make up over a third of our nation’s population. Interestingly, only a small fraction of those renters will ever build credit for making rent payments. Currently, these individuals are often limited to building their credit through high-interest credit cards or similar high-risk, expensive alternatives, such as buying a home or car. But what if there was a solution for renters that would allow them to utilize their largest monthly expense to help build their credit? Reporting rent payments could create a better credit profile while creating a more complete picture of that individual.
In light of that, about three years ago, RentPlus began a partnership with TransUnion when they inquired about reporting rental and utility data.
"Given that we’re there to assist our customers in being financially strong, smart, and prepared, it was important to us to find a better way to build a credit score. For that reason, TransUnion quickly saw the value in rental data and we began working together to formulate a file format and process for us to submit rent payments to them.”
- Jim Rowley, RentPlus
By utilizing TransUnion ResidentCredit—a powerful resident rental payment reporting solution—late payments, skips and chronic non-payment information can appear on users’ residents’ credit reports. By reporting rental payment information directly to a credit bureau, late or missed payments appear faster on a credit report than as a collections item. Advantageous to renters, TransUnion ResidentCredit can also reward on-time payments to potentially build credit.
RentPlus believes it’s more important than ever to have a good credit score. While interest rates on all types of loans and credit products have remained at an all-time low, banks and other financial institutions have been far more analytical when it comes to considering loan approvals and interest rates. Your current credit score may determine if you’re accepted or denied for a loan.
Reporting rent payment through TransUnion ResidentCredit could be beneficial to everyone. For a resident, it allows them to show they’re creditworthy and able to make payments on-time. For a stakeholder, it gives them a more complete picture of their risk in lending. It also aids by:
- Discouraging late payments by residents
- Converting more leads into actual residents by promoting rent payment reporting
- Rewarding responsible residents by giving them credit for what is likely their largest monthly payment
When it comes to managing personal finances, powerful automated tools may be your answer. RentPlus provides customers with RentPlusMoney, an empowering personal, financial management tool that allows users to organize, track and control their money. Users will also be able to aggregate all their accounts in one place, view their income and spending by category, create a powerful budget, as well as set meaningful and attainable financial goals. RentPlus has helped thousands of renters build their credit, become better educated in financial matters and manage their money more successfully.
If you’re interested in learning more about the services TransUnion provides through our partnership with RentPlus, please contact your TransUnion sales representative.