Will Reporting Rent Payments Help Working Poor?

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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.