Rent reporting is emerging as a vital tool for millennials and Gen Z individuals who are facing challenges in accessing homeownership due to the traditional credit scoring system's oversight of rent payments. Historically, credit scores have not accounted for on-time rent payments, which has left many potential homeowners at a disadvantage, particularly those from low-income and low-wealth communities. With the rise of innovative rent reporting services, renters can now have their on-time payments included in their credit history, helping to build a stronger credit score without taking on additional debt. Companies like Self, Boom, and Rental Kharma are bridging the gap by reporting rent payments to credit bureaus, allowing renters to demonstrate their reliability and improve their creditworthiness. This shift is significant, as studies show that 80% of renters who report their payments see an increase in their credit scores. As the landscape of homeownership evolves, rent reporting offers a pathway to financial inclusion and stability for many.
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