Tenants Improve Your Credit by Paying Your Rent On Time

Ashoka Lion believes that if our tenants want to build credit and achieve their financial dreams that this program can help tenants achieve their goals while our landlords are able to benefit from tenants who pay the rent on time and make their payments. This is the best win-win for our landlords and tenants. You pay your rent on time, landlords get their money to pay mortgages and taxes, and you build your credit to help you achieve your financial dreams. 

Yes, you and your spouse can both build credit as long as you each enroll in your own credit buider account. Credit reporting is based on your birthdate and social security number, so you each have to have your own subscription.

No, the program provider will only be using a soft inquiry so it should not have impact on tenant credit scores.

Rent payments are used to formulate your FICO 9 score. Tenant rental tradeline is also used in different scoring models, such as Vantage, and can be used to make credit decisions for lenders who look at more than just your credit score.

Rent reporting builds history in a tenant credit file without adding debt. Because rent payments demonstrate responsibility, and the ability to make large on-time monthly payments, the scoring models take that into account. 

Research has shown many renters see a 29+ point improvement in just 2 months and even bigger gains when rent reporting is used over the life of a lease. 

Remember, credit is all about demonstrating history. So, typically, the longer you have a rental tradeline on your credit report, the better. 

Rent payments are used to formulate your FICO 9. Your rental tradeline is also used in different scoring models, such as Vantage, and can be used to make credit decisions for lenders who look at more than just your credit score.

Keep in mind that the three major credit reporting bureaus collect data about your financial history to compile a credit report. The data from these credit reports make up your credit score, but each bureau might have slightly different data. So, there can be at least three different FICO scores, since the data at each bureau may differ.

This is why RentTrack reports to all three credit bureaus. You never know what scores lenders will be looking at, so having the most important bureaus covered is key.

Why is a good credit score important to you? 

• Lower Interest Rates on Credit Cards
• Improved Chance to Be Approved for Credits Cards or Loans
• Improved Chance to Be Approved for Car Loans 
• Improved Chance to Buy New Furniture more affordably
• Lowers risk of a deposit on a cell phone account
• Lowers risk of a deposit on utility accounts
• Lowers your car insurance rates
• Being approved to rent homes more easily
• Eventually buying the home of your dreams