According to a recently released analysis from TransUnion, rent reporting had quick and positive effect for a majority of consumers in the study. Considering there are now almost 40 million renters (5 million were added during the recession in 2007), this is welcome news for non-homeowners who are looking for additional ways to build credit history.
Compared to first time homebuyers, who saw a 5.4% credit score increase in 2012, the average renter saw a slight decline (-0.4%) over the same time period.
For the reporting renter, 8 in 10 subprime consumers experienced an increase in their VantageScore one month into their new apartment lease and nearly 41% of subprime consumers saw their VantageScore increase by 10 points or more after just one month.
Beyond the subprime segment, TransUnion’s analysis found that “the majority of the overall renter population could also benefit from having their rental payments reported.” This is an exciting finding, and aligns with our belief that soon every renter will be paying online using rent-reporting services like RentTrack.
