Some consumers may have noticed that certain aspects of their payment history now may apply towards their credit score, but questions have arisen concerning how helpful this particular change in credit reporting may be for those who are attempting to repair their bad credit score. Recently, Experian stated that they would allow rent payments to be included in a consumer’s credit report, as a traditional item and this could greatly benefit some consumers who may not have a great deal of debt or credit history, which could all be used to improve one’s overall credit rating. However, this is not necessarily going to impact all renters as this would require a landlord to submit this information, and is merely an option that may be used and not a guaranteed source of a payment history.
Obviously, when consumers are in a position where they have bad credit, some may have little concern over this aspect as they could be in situations where credit cards or rates on other loans are not necessary, which may be something that some consumers are currently facing, but financial advisers often point out that there are really no downsides to having a positive credit rating and a good credit history, as this will always benefit an individual when it comes to getting types of credit that may range from a mortgage to a car loan.
While using one’s rent payment history to build a better credit score could be greatly helpful for long-term renters, as some young men and women may be renting at the present time while they save money for a home years down the road, they could also give some consumers years worth of data when it comes to allowing lenders to see how a particular consumer handles debt and whether they make payments on-time in certain areas. Again though, this rent reporting is not something that is guaranteed or required, but if a consumer is in a position where they want to improve their credit score there are other ways that individuals have accomplished this goal in the past and it may help consumers currently in need of a credit repair.
Understandably, if a consumer is in a position where they do not have a great deal of knowledge on how their credit scores calculated, what’s on their credit history, or what steps they can take to begin improving their credit score, there are credit counselors and financial professionals that can help in this area as the decision to improve one’s bad credit score and the methods that the consumer uses will be a personal journey that they must take, but consulting financial professionals can give some guidance or more education in this area.
Simply put though, consumers usually review their credit history to see if there are any mistakes, make sure they keep their bills paid on time, and some have even used credit cards as a way to make purchases on a monthly basis but pay them off in a promptly so that they can build their history by using this particular type of credit source as well. However, bad credit repair is a long process for some and, depending on whether the consumer just wants to improve their credit or dig themselves out of a bad credit situation, this may require different techniques, so as consumers are finding themselves in a variety of positions thanks to current economic and employment conditions, the strategies used by these individuals will likely differ as some men and women may be on a limited budget when it comes to building their credit while others may be able to go further when it comes to accessing credit sources that may potentially help them improve their overall rating.