Having a positive credit history and a high credit score has many benefits. This can include lower interest rate loans, higher chances for loan approvals for homes and other purchases, and an easier approval for an apartment home. But how does someone build and improve their score without taking on new loans and credit? One path is taking advantage of paying rent on time.
Traditionally, rent payments were not reflected on credit reports. However, your residents should receive recognition for their rent payments as they’re often their largest monthly payment. With that in mind, TransUnion and PayLease –– a leading provider of online payments, resident billing and utility expense management solutions –– began a valued partnership two years ago. Since then, TransUnion’s ResidentCredit and PayLease Credit Reporting — a feature of PayLease’s online payment capabilities that shares a resident’s rent-related payment with TransUnion — have benefited both multi-family businesses and residents. Residents have the opportunity to improve their credit, and multi-family businesses provide added value and can differentiate their property.
See how it all works:
With rental payment information appearing on the resident’s credit file alongside their other financial obligations, such as auto loans, credit cards and student loans, residents are now building their credit history and able to see the potential impact to their credit score by paying online and on time. As for the multi-family business, the on-time payment incentive for renters helps improve cash flow on their end through reduced delinquencies. Rent payment reporting has also been a great differentiating selling point when managers advertise their properties.
By helping to convert more leads into actual residents, discourage late payments and reward responsible residents by giving them credit for their on-time rental payments, rent reporting is a “no-brainer.”
Don’t delay –– start reporting today!
Through the initiatives and aspirations of our partnership, rent reporting has allowed residents to:
- Construct thicker credit files and possibly increase their purchasing power
- Not rely on traditional credit-building strategies, such as credit cards, loans, etc.
- Own their rental history