When purchasing a home or applying for a loan, one of the first things creditors assess is your credit profile. Beyond just your credit score, they evaluate factors such as the age of your credit accounts, your credit usage, and—most importantly—your credit history. Creditors are looking for signs of reliability and responsibility in managing financial obligations.
For renters, there’s typically one major bill they pay on time each month: their rent. Unlike other expenses, rent isn’t a bill that can easily be deferred; it’s a non-negotiable priority for most people. However, many Americans could see significant improvements in their credit scores if landlords reported tenants’ rent payment history to credit bureaus. After all, a consistent record of on-time rent payments offers a clear, reliable indicator of financial responsibility, making it a valuable consideration when determining someone’s ability to manage a mortgage.