Jan 23, 2012 Philip Burgess
According to recent census data, approximately 35 percent of the United States population rented homes in 2010, The New York Times reports. However, rental history is often not part of a traditional credit report, leaving many responsible renters with no reward for their efforts.That changed when alternative credit report companies, started adding information to achieve a more non-traditional credit report. This included one-time rent payments as well as mentions of bounced checks and instances when tenants left before their lease was up. The news source notes that the people most affected by the change were those who hadn't yet established credit histories through credit cards. Almost half of these perceived "higher risk" consumers with a positive rental history saw credit score increases of 100 points or more. The primary benefits of adding one's rental past is the ability to establish or rebuild credit with responsible renting, and having the option to leverage a positive history when applying for credit. It also offers businesses the opportunity to tap into a huge market of creditworthy customers by allowing them to use alternative data to make credit decisions with reduced risk. Small and medium sized businesses, hit hard by the credit crunch, now have ways to reach new and emerging markets.