According to a recent article in the New York Times, having a history of paying your rent on time could help boost your credit rating and help you when you are ready to purchase a home.

Experian, one of the three leading credit reporting companies, has started using rental history incorporated into credit scores.  On-time rent payments would boost scores and bounced checks or breaking leases could potentially reduce scores.

This could be an easy way for renters to raise their credit scores and purchase a home while home prices are lower AND take advantage of the current low-interest rates.

Other credit reporting companies plan to create a new credit report and scores that add in information about rental history as well as other non traditional loans.

Some renters have struggled to show credit history because of lack of credit. Adding in rental payments could help these people.  Some people saw increases of 100 points or more.

To read the entire article visit:

http://www.nytimes.com/2012/01/08/realestate/mortgages-a-good-rental-history-can-help-borrowers.html?_r=1&partner=rss&emc=rss

 

 

 

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