A few years ago, I wrote about a new formula for credit scores that includes rent payments. Some like the idea as now renters will a history of 0n-time payments will have their scores increased by continuing to do what they’ve been doing. Some dislike the idea because some renters could be hurt by reporting not-so-on-time payments.
The Credit Builders Alliance (CBA) has done a study to provide more insight.
- 79% of participants experienced an increase in their credit scores
- Average scores increased by 23 points
- Participants that were previously “credit invisible” had a credit file created.
To read more about the study click here.