Credit Help For Renters And Others On The Horizon

Sue is a homeowner and pays her mortgage and other bills on time like a good credit consumer. Sue's on-time mortgage payments are reflected in her credit score profiled by the three major credit bureaus; Equifax, Experian and Trans Union.

Joe on the other hand is a renter, who wants to buy his first home in the near future. He pays his rent on time every month as well as his phone and utility bills. Joe is also a good credit consumer but his on-time payments are not reflected in his credit profiles. Why? Because the major credit reporting agencies are not set up to track this type of payment and therefore they are not reflected in Joe's credit score. Chances are good that Joe's credit score will be lower than Sue's because his on-time rent payments go untracked by the credit bureaus.

As a result Joe will be quoted a higher interest rate and higher fees to his lender when he applies for his first home mortgage. Seems a bit unfair doesn't it? The good news for Joe and other renters like him is that the credit reporting system is about to change.

In a recent Chicago Tribune article, reporter Kenneth R. Harney points to the creation of a new national credit bureau whose "sole mission is to track the payments that nobody else tracks." The new credit reporting agency PRBC (Pay Rent, Build Credit) wants to build credit files on as many as 10 million renters nationwide over the next 5 years.

According to PRBC's founder and chief executive Michael Nathans, the new bureau will earn revenue by selling supplemental credit reports to lenders. CitiMortgage, Inc., one of the nation's major home lenders, is already a subscriber of the new service.

Some other highlights of PRBC's service include:

  • 24/7 access to online files by consumers, free of charge.

  • Consumers must give permission to have their files accessed by lenders.

  • Consumers can input up to 36 months of documented on-time payments.

  • They accept payment histories from phone, credit and debit cards so long as the source (merchant) can send a date-stamped electronic receipt of payment.

  • Many consumers who bank online can have their payment information recorded by PRBC once the bureau becomes fully functional

PRBC can benefit not only renters but also young and minority borrowers who have little or no credit history with the traditional bureaus. "We think we can help create equal credit opportunities for everybody who deserves a a prime rate loan, " Nathans said.

Consumers can register for free with the new bureau online at http://www.payrentbuildcredit.com.

About The Author

© 2003 James H. Dimmitt, www.yourfreecreditreportnow.com

James is editor of "To Your Credit" a FREE weekly newsletter for consumers. You can subscribe at http://tinyurl.com/bgo9

jimdim815@aol.com

In The News:

pen paper and inkwell


cat break through


How Can A Qualified Mortgage Consultant Help Boost Your Credit Scores?

Consumers interested in purchasing or refinancing a home will pay... Read More

10 Signs You May Need Credit Counseling

Debt management programs can be of real help for people... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers... Read More

Credit Cards -- What You Should Know

There are a lot of questions about using credit cards.... Read More

Credit Cards - A Blessing or a Curse?

Owning a credit card can be quite an advantage. Whether... Read More

Fair Isaac Corporation Credit or FICO Score

As I am not from the US, I had no... Read More

What is Credit Counselling?

Ever wondered what is Credit Counselling? There are occasions when... Read More

Annual Credit Report and Free Annual Credit Report

Getting an annual credit report review has been the advice... Read More

Good Credit is King, When Qualifying for Mortgage Programs

If you want to purchase a new home or refinance... Read More

Myths and Truth about Credit Scoring

Credit score is the key factor determining approval of almost... Read More

How to Dispute Credit Report Errors

Your credit report--a type of consumer report--contains information about where... Read More

Credit Cards: What is the Universal Default Clause?

Most people who carry major credit cards are well aware... Read More

How Credit Scoring Works

The all important credit score! It determines the amount of... Read More

Identity Theft Exploding: Here?s How You Can Avoid Becoming A Victim

Americans are more concerned about identity theft than unemployment or... Read More

Is Plastic Making You Happier?

If you're like most people, you probably own at least... Read More

Building A Credit Report Lenders Will Love You For

Will lenders really love you for having a good credit... Read More

Good Credit -- Essential for the Prospective Home Buyer

Credit is a funny thing. It can be a useful... Read More

19,178 Identity Theft Victims Per Day - Are You One Of Them?

Identity theft statistics are shocking. And we are told that... Read More

Reward Credit Cards: Get the Best Rewards Card Incentive Program

A good credit reward card can contribute to your retirement... Read More

Tackling Bad Credit

The first time I heard the term credit history was... Read More

What is a Credit Report?

Ever wondered what is a credit report? If you've ever... Read More

How To Avoid Becoming A Victim of Identity Theft

With identity theft statistics currently at an all time high,... Read More

Debt Collection Agencies

Debt collection agencies are often a viable option for receiving... Read More

Learn About Prepaid Credit Card

Prepaid credit cards also called stored value card can be... Read More

Identity Theft - How to Protect Yourself

"Like the tan? I got tons of sun on that... Read More

Why Credit Cards are a Bad Idea

Credit cards are just so convenient, aren't they? There's no... Read More

Guide to Credit Terms

Listed below is a useful guide to credit card terms.... Read More

Credit Repair Myths and Facts

There are no secrets to repairing your credit. Many shady... Read More

Negotiating Rates with Your Credit Card Company

Ok, let's face it, everybody hates high credit card rates,... Read More

How Healthy Is Your Credit

There's only one way to discover the "health" of your... Read More

Credit Report Disaster Through Mistaken Identity

I've got some very important info I want you to... Read More

How Does a Creditor Determine Whether to Grant You Credit?

Credit 101How does a creditor determine whether to grant you... Read More

Your Credit Score

Credit scores: all lenders use credit scores to determine interest... Read More