Your Rent Payment May Appear on Experian Credit Reports

Date February 18, 2011

If you are a renter, make sure you make your payments on time! If you do, it can help you build credit. If not, your late payments may be reported to Experian, which can hurt your credit.

CNN has reported that this change may affect millions of renters. Not all landlords will report to Experian, so if you have a good relationship with yours, ask. Right now, this can affect renters only in a  positive way. If you don’t have credit cards or any loan history, paying your rent on time is a great way to start building credit. The more positive credit and payment histories on your credit report, the easier it will be in the future for you to get a good rate on a loan, whether it’s a car loan or mortgage. If you pay on time, it will reflect positively on your credit report.

However, if you do not pay on time, this can certainly affect your credit in a bad way, by reporting late payments. But don’t fret just yet. Negative accounts will not be reported to Experian until next year, as reported by cnnmoney.com. That’s not to say you can get away with late payments now. Start this off with a positive payment history and you won’t regret it later when you *do* need that car loan or want to buy a home.

The other two reporting agencies – TransUnion and Equifax – are not currently including rental data but you never know which credit reporting agency the financial institution will use to check credit when you want to apply for a loan.

If you want to find out if your credit will be impacted by this, simply ask your landlord or property manager, or you can contact Experian and request a credit report.

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