Piñata thinks you do!
Getting the credit boost you deserve (for on-time rent payments) should be a no-brainer. But here’s the deal: Historically your rent payments haven’t been factored into your credit score for all sorts of reasons…none of them good. It ultimately boils down to this: The world of rent has been super resistant to change…until now! But all of a sudden the PropTech landscape is on fire, which means radical change (forced evolution?) has become the new normal.
So fasten your seat belts. Rent is about to get interesting.
Let’s start with a few key facts: Most people spend 30-50% of their monthly budget on rent, and get nothing back–no rewards, no boost to their credit score, nothing. Yet rent still remains most people’s single biggest monthly expense. Shockingly, less than 1% of credit reports even contain rent payment history as a factor. A recent TransUnion report states, “The credit-scoring giant FICO says rent is an entry — called a “tradeline” — on less than 1% of credit files.”
USA Today had this to say:
“Your credit history also affects whether you must pay a security deposit to set up utilities or a cell phone account. Depending on the state, your credit also plays a role in setting your auto insurance premiums. And, of course, landlords check credit reports when approving potential tenants or renewing existing ones.”
But here’s the good news. In a recent Goldman Sachs study in partnership with Credit Builders Alliance, it was found that reporting rent payments can have an immediate and significant impact on one’s credit score. “The participants experienced an average credit score increase of 42 points after having their rent reported to the credit bureaus for an average of four months, suggesting rent reporting can be an innovative solution…”
One final thought on the matter.
Homeowners get credit for their on-time mortgage payments, so why shouldn’t renters?
Pinata wants to change that with the most affordable and reliable credit building product on the market. We’ve made it super simple to report your payments directly to the Big 3–Experian, Equifax, and TransUnion. We even created a whole educational section on the Piñata app to help raise your Finance IQ. And here’s the real takeaway: Great credit can have a huge impact on your financial well-being. Think about it? Don’t you want more approvals on your financial applications, better rates on your car loans, and basically having more money in your pocket at the end of the month? Who wouldn’t?
After all, Pinata believes having better financial options is always a good thing.
So what are you waiting for? Let Piñata get you the credit you deserve!