News & Resources

Rental history now appearing on credit reports

Feb 16, 2011 Matt Roesly

Landlords and other property managers nationwide will get a better view of a prospective renter's history now that Experian will include an individual's leasing and payment history in his or her consumer credit report. According to CNN Money, the credit reporting giant added rental history to its formula in January. The end results are two-fold. First, consumers will be able to build a stronger credit score by ensuring that their rent checks are delivered on time. Meanwhile, landlords will be able to conduct more detailed background screenings of potential tenants and discern any risk involved. Credit score changes are unlikely to affect the majority of renting consumers, CNN Money reports. However, a total in the "low millions" of renters could be affected if their landlords report to Experian. "For many, rent was their biggest monthly expenditure, and they never got the credit they deserved for making those payments," Brannan Johnston, vice president and managing director of Experian's RentBureau, told the news source. There are positive and negative effects to Experian's addition. But for millions of timely Americans renters, adding this history into the formula is a benefit that could one day help them purchase their first homes.