RentTrack Shows Positive Impact of Rent Reporting
St. Louis Park, MN, Mar 6th, 2015 - RentTrack just completed a 6-month review of consumers that have reported rent payments through RentTrack. We found that consumers who reported rent payments for 2 months or more saw their Vantage Scores increase by an average of 9 points. This is great news for anyone who has a history of paying rent on time.
For subprime consumers, or those with credit scores below 650, Vantage Score increases were more profound with an average increase of 29 points. In addition, for consumers who previously did not have a score due to a thin file (not enough information to score), every single one received a score after reporting, with an average score of 639. This could be particularly powerful for students and recent graduates who have little other avenues to build credit.
These findings are consistent with other recent research from national credit reporting companies that incorporate rent payment data into their scoring models. The VantageScore was developed by all three major credit bureaus, and was one of the first to incorporating rent payments into its model. FICO, the score used by most lenders in the US, has also announced it will start to incorporate rental payment data.
“We’re really excited to see the results of this study, and are happy to be at the forefront of one of the first major shifts in credit reporting in three decades,” said Matt Briggs, CEO of RentTrack. “What we found most compelling is that every single consumer who utilized RentTrack developed a credit score. This is a paradigm shift that every renter in this country should take advantage of, especially students and those who are just starting out. Finally, our property managers have found that their residents are much more likely to pay online if they have access to this substantial benefit.”
Matt will be speaking about these results at the Power of Rent Reporting Conference, hosted by the Credit Builder’s Alliance and the Citi Foundation, in Washington D.C. on March 20th.
RentTrack gives residents a real reason to pay rent online and on-time. RentTrack can report rent payments directly to major credit bureaus to help residents build credit history. For the first time, consumers have a new avenue to build credit without incurring debt. RentTrack makes it easy to accept credit cards and e-checks online while maintaining an easy integration with the accounting software. For more information, visit www.renttrack.com.