Building Credit
Building credit can be a daunting task and could have a long term negative impact if done improperly. By subscribing to and using the Renter’s Credit process, you can successfully build a good credit history. Renter’s Credit uses your
alternative credit source, monthly rent payments, to build your credit file so you don’t have to use high interest rate credit cards or personal loans.
We make it simple and efficient by providing you the ability to automate your rental payment.
Before you subscribe to Renter’s Credit, it will help if you understand what it means to “Build Credit”. Building credit may be defined in several ways, but in its simplest definition it is:
“Rating an account, established between two or more parties, where regular payments are made according to a schedule.”
There are many reasons to build credit, but the most important is that our economy relies on the review of a person’s credit history (credit report) in order to decide whether or not a person is qualified for certain services (i.e. loan, utility, certain jobs, etc.). If you don’t establish and manage good credit, the result could be less choices when you are purchasing, and the remainder will cost you more as the terms for poor or bad credit clients are much costlier.
So whether you find yourself just wanting to increase the amount of credit in your file, are just starting out and need to establish credit, or you are trying to re-establish credit due to a major financial or personal hardship we at Renter’s Credit are ready to help you. The following are just a few of the situations Renter’s Credit can help you with:
Great Start Program
Students / First Time Renter program
Immigrants / New to the country
Path to Homeownership Program - preparing to become Homeowners
Credit Challenges Program
Renters that have filed Bankruptcy
Homeowners to Renters - Foreclosure
Homeowners to Renters – Divorce
What is alternative credit?
Despite the vast accomplishments of the American credit system, approximately 35 million to 54 million Americans remain outside the credit mainstream. These individuals are unable to access credit, or credit at competitive rates, because of the lack of traditional information, such as mortgage and credit card payments, available on their credit files. However, the recent report by the Political Economic Research Council and Brookings' Urban Markets Initiative "Give Credit Where Credit is Due" provides evidence that the inclusion of alternative data on credit-like payments, such as rent and utility payments, in credit reporting can help bridge this information gap. The first step toward filling this gap requires a systematic report of data to the major credit bureaus.
"Alternative" or "nontraditional" data includes payment obligations such as rent (Renter’s Credit Process), gas, electric, insurance, and other recurring obligations, to evaluate the risk profile of a potential borrower. The use of alternative data in consumer (and commercial) credit reports can close an information gap that has negatively affected the lives of millions of thin-file and unscoreable Americans who reside in urban areas and elsewhere.
What is a credit report
Credit reports are used to create your credit scores, the three-digit numbers that lenders typically use to gauge your creditworthiness. Lenders also may look at the reports themselves, as may the landlords, employers, insurers and utility companies who use credit to evaluate applicants.