Renters May Have A Better Shot At Buying A Home Due To Credit Score Changes

Dated: 08/07/2014

Views: 1861

Including rental history to a credit score could make all the difference for potential homeowners, according to an article in Businessweek.

Experian published an analysis of almost 20,000 people in government-subsidized housing who pay their monthly rent on time. The survey found that before adding their rental history, 11% of the same had no credit file at all, which makes it extremely hard to obtain a loan. However, once the rental history was included, 59% of that group had prime credit scores, and another 38% had “nonprime” scores, while only 3% were considered subprime.
Mortgage lenders have indicated that they may start considering rental payment history in credit scores. Currently, monthly payments over time to landlords are not included in credit-bureau files.
Two of the national credit reporting bureaus - Experian and TransUnion - have begun incorporating verified rental-payment data into credit files where it can be included in the computation of consumers’ scores when they apply for a mortgage.
Source: Businessweek

Want to Advertise on this Site?

Latest Blog Posts

Million Dollar Spaghetti Recipe

Million Dollar SpaghettiSort of like Lasagna but BETTER! A perfect combination of pasta, meat, and cheeses mixture. Unbelievably good! Serve with garlic bread and a salad. Enjoy!Ingredients1 (16

Read More

11 Reasons To Sell Your House During The Holidays

11 Reasons to Sell Your House During the Holidays 11.) By selling now, you may have the opportunity to be a non-contingentbuyer in the spring, when many more homes are on the market forless

Read More

Why Getting A PreApproval Should Always Be Your First Step

Why Getting A PreApproval Should Always Be Your First StepIn our current market, the number of buyers searching for their dream homes greatly outnumbers homes for sale. This has led to a

Read More

The Cost Of Renting Vs Buying

Some Highlights:Historically, the choice between renting or buying a home has been a tough decision.Looking at the percentage of income needed to rent a median-priced home today (29.2%) vs. the

Read More