The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
  • Books
  • Categories
  • Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Contact
  • Subscribe
  • QR Code
No Result
View All Result
The Money Coach
No Result
View All Result

How to Use Rent Payments to Boost Your Credit Score

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Credit Scores
Reading Time: 2 mins read
Share on FacebookShare on TwitterShare on LinkedIn

This post originally appeared on Sisters from AARP

Black folks often face a host of credit challenges stemming from lower incomes, discrimination, a lack of knowledge about credit scoring and more. But one additional factor — the low rate of Black homeownership in America — has also meant diminished credit scores.

Currently, nearly 6 out of 10 of us rent, with just 43 percent of African Americans owning their own residences, according to a 2022 report from the National Association of Realtors.

The result: People with mortgages get the benefit of having their housing payments reported to the credit bureaus. But for other individuals, what is often their largest monthly expense — their housing cost as renters — is typically excluded from their credit profile.

Thankfully, that’s changing in many ways, including the growth of numerous new services that let you get credit for making on-time rent payments.

Here are some simple ways to report your rental history and get the credit score you deserve.

Why don’t credit bureaus factor rent payments into your credit score?

Though over a third of the population rents, rental payments are still considered alternative credit data by the three major credit bureaus. As such, your history of handing over your rent check on time isn’t likely to be reported by your landlord.

But Equifax, Experian and TransUnion, the top three credit reporting agencies, will include your rental history in your credit report if they receive the information. So, you want them to have that information; you don’t want to fly under the radar of the major credit bureaus when you have a great track record of paying your rent on time.

Why are on-time rent payments a good way to build credit?

Rent payments can help build credit the same way paying your mortgage does. Though you’re not paying a debt per se, you can still establish a pattern of making regular, on-time payments, which demonstrates reliability to potential creditors. And since you have to pay for housing anywhere you live, you might as well get credit for your good habits!

Continue reading on Sisters from AARP.

Tags: rent payments
Previous Post

10 Shopping Tips to Save Money on Groceries

Next Post

Meet LeCount R. Davis, the First African American to Become a Certified Financial Planner (CFP) Professional

Related Articles

credit score drops

What to Do If Your Credit Score Suddenly Drops Unexpectedly

by Lynnette Khalfani-Cox, The Money Coach

Need a quick refresher about how your credit score works? Due to inflation, many consumers are being forced to rely on their credit cards to make ends meet. As a result, many consumers have seen their credit scores go down as their balances go up. Here are 3 articles that can help you better understand how your credit score works...

protect your credit score

How to Protect Your Credit Score After Job Loss 

by Lynnette Khalfani-Cox, The Money Coach

A lack of income makes it hard to cover your expenses, which can cause your credit score to fall. But there are ways to preserve it, even if you are out of work. Here are four tips for maintaining your credit score if you have lost your job.

Best Way to Check Your Credit Score Using Apps

The Best Way to Check Your Credit Score Using These 4 Apps

by Guest Blogger

Did you know that on a $21,788 auto loan, if you have an excellent credit score (740 – 749), you can pay 311% less in interest compared to an individual with a fair credit score (580 – 669)? 311% less! Your credit score determines whether you qualify for things like loans, credit cards, and other crucial high-priced items, along with...

DTI Explained

DTI or Debt-to-Income Ratio Explained w/Video

by Lynnette Khalfani-Cox, The Money Coach

If you’re in the market for a loan, chances are that lenders are going to assess something called your “DTI” – also known as your Debt-to-Income ratio. What Exactly is a DTI? And, how can you improve it in order to get that loan that you want? How DTI is Calculated First of all, you need to know which debts...

4 Summertime Risks to Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach

Just because summertime is here and you might be taking it easy, that doesn’t mean you should let your guard down when it comes to your finances. In fact, during the summer season, you should be aware of a number of potential threats that can hurt your credit rating. Some of these things are common actions you might take when...

credit score drop

What to Do If Your Credit Score Drops Unexpectedly

by Lynnette Khalfani-Cox, The Money Coach

  Having your credit score fall unexpectedly can be as bad as losing a significant amount of money. With a lower score, your opportunities for low-interest loans, lower insurance premiums, and more affordable mortgages may be out of your reach. What’s worse is that these fluctuations may come from out of nowhere and may confuse you on where to begin....

Load More

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2023 TheMoneyCoach.net, LLC. All Rights Reserved.

RSS / Sitemap / Privacy Policy / LynnetteKhalfaniCox.com

No Result
View All Result
  • Books
  • Categories
  • Contact Lynnette
  • Get Coaching
  • Hire Lynnette
  • Money Coach University™
  • The Money Coach Recommends™
  • Home
  • Subscribe to Newsletter
  • QR Code

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.