Experian is now incorporating rental-payment history data from its recently acquired RentBureau unit into its traditional credit file, which it says will make it easier for college students, recent graduates and immigrants to boost their credit scores — if they pay their rent on time. Typically, credit reports include payment history on credit cards, mortgages, retail accounts, installment loans and finance company accounts.
Still, there are limitations. RentBureau’s database receives rental payment histories every 24 hours from property managers, but currently includes only 8 million residents nationwide.
Last June, Experian acquired RentBureau, and, last month, started incorporating its data into its traditional consumer credit reports.
Actual use of rental data in credit decisioning will likely take longer, as lenders build models accommodating this information and gain track records for analysis. The number of records incorporating rental information will also affect the appeal and usefulness of the information to lenders; appeal will grow as the number of available records increases.
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