Girl, if he makes you feel invisible, he’s not the man for you. 💅 Either that or he’s a Las Vegas magician. Something about pulling a rabbit out of a hat just makes us swoon. 🐇🎩
Speaking of being invisible, many Americans are “credit invisible,” which makes it tough to access financing. However, if you’re a renter, reporting your on-time payments could be a game changer. 💸
Here’s Five Fast Facts on rent reporting and your credit:
- 🫣 Can You See Me? - According to recent data, roughly 50 million Americans are “credit invisible.” Credit invisibility is a fancy term for not having a credit file or a credit score. Without a credit history, it’s difficult to get credit cards, loans, or a mortgage. Lenders look at credit invisible individuals as risky.
- ⏰ Right On Time - If you don’t have credit or are trying to rebuild a bad score, reporting on-time rent payments may be the answer. Fannie Mae’s Positive Rent Payment Reporting program runs through the end of 2024 and reports on-time rent payments to the three major credit bureaus for free. Experian also has a free rent reporting program and also reports on-time utility, mobile phone, and streaming service payments.
- ⛹️ He Shoots, He Scores - Research shows that reporting on-time rent payments boosts a consumer’s credit score by an average of 60 points. Through the Fannie Mae program, participants who had an existing credit score saw an average increase of 40 points.
- 🙇 Patience Is a Virtue - All good things take time, and that also goes for building a solid credit score. A rent-reporting program can help, but it takes an average of six months to create a credit profile. It takes even longer to establish a healthy credit history. Aim for a score above 670 to stay out of high risk territory.
- 💵 Pay to Play - While the programs from Fannie Mae and Experian are free, some rent reporting services come at a cost. Make sure you check the fine print before signing up. If you’re going to use a paid service, at the very least, it should report your payments to all three credit bureaus.
🔥Bottom line: Credit scores can feel like a major black hole. What kind of math are they even doing behind the scenes!? No matter how you slice it, on-time payments are the golden ticket to a squeaky clean credit history. Thinking about putting those bills on a credit card? Before you do, read this article.
Do you use a rent reporting service?
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