Credit Bureau to Begin Tracking Rent Payments
For many years, renters never had to worry about the financial impact of a late rent check. Starting next year, Experian, one of the big three credit bureaus, is going to change that.
Experian has already started collecting data about consumer rental payments, and much of that data has already started to be reported in its credit reports. For the remainder of 2011, the bureau is only reporting positive data. Next year, however, Experian will begin reporting the other side of the spectrum: negative information arising from late rental payments.
"Given that one-third of the U.S. population rents, we felt it was imperative to reflect the true creditworthiness of those individuals who responsibly pay their rent," says Brannan Johnston, vice president and managing director, Experian RentBureau.
RentBureau is a widely used credit bureau in the multifamily industry, which was acquired by Experian in 2010. Working with a national network of 45 property companies, RentBureau collects daily data about rental payments and in turn, is able to report payment history for Experian.
As a result, it remains to be seen whether or not the other big two credit bureaus, Equifax and TransUnion, will follow Experian's lead in reporting rental data.