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A good score is needed to rent an apartment in New York.
Up until now, your rent payments didn’t impact your credit score – more or less. Of course, if your landlord had to sue you to collect the rent, there was a negative impact on your credit score. If your landlord had to take you to landlord-tenant court, that would also negatively affect your credit score. But if you were like most renters, who basically paid on time, there was not effect on your credit score.
That’s changing. Last year, Experian, one of the three leading credit reporting companies, started factoring rent payments into the credit report and credit score. This year, Experian is also adding any negative rent payment information.
Now, CoreLogic and FICO are planning credit reports that incorporate rent payments as reported by landlords. Non-traditional loans, such as payday loans and child support will also be factored into their new credit reports.
A history of good rental payments will help consumers, even if the consumer doesn’t have credit cards.
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