The inclusion of home rent payments in Vantage Scores is having a significant positive impact for subprime consumers as well as consumers with thin files such students and recent graduates.
A recent six-month review by MN-based RentTrack found consumers who reported rent payments for 2 months or more saw their Vantage Scores increase by an average of 9 points.
For subprime consumers, or those with credit scores below 650, Vantage Score increases were more profound with an average increase of 29 points.
In addition, for consumers who previously did not have a score due to a thin file (not enough information to score), every single one received a score after reporting, with an average score of 639.
The findings are consistent with other recent research from national credit reporting companies that incorporate rent payment data into their scoring models. The VantageScore was developed by all three major credit bureaus, and was one of the first to incorporating rent payments into its model. FICO, the score used by most lenders in the US, has also announced it will start to incorporate rental payment data.
RentTrack says it found what is most compelling is that every single consumer who utilized RentTrack developed a credit score. This is a paradigm shift that every renter in this country should take advantage of, especially students and those who are just starting out. Finally, its property managers have found that their residents are much more likely to pay online if they have access to this substantial benefit.
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