There are lots of people who are renting in the city of Coconut Creek, FL. There are people renting apartments and people renting houses. A recent study was conducted on how rent payments can be used to get a mortgage on a new house. Did you know that renters who want to become homeowners can improve their chances of obtaining a mortgage loan when their rent payments are reported to the credit bureaus? Yes, this is true. This recent study also showed that even renters with low credit scores may be able to get a home loan if their monthly payments are reported to the credit bureaus and they have been diligent in paying them.
According to an analysis by TransUnion, about 8 in 10 consumers with subprime credit saw an increase in their credit scores after one month in a new apartment lease when their rent payments were reported. The downfall to this amazing news is that most renters in Coconut Creek do not offer this benefit. Tim Martin, executive vice president at TransUnion said, “The rental history of most consumers does not get reported to the credit bureaus.” The credit bureaus understand the fullness and benefit that comes if more property management companies do report their renters’ monthly payments. That is exactly why they are trying to encourage large property management companies to submit monthly rent payment data about their residents to TransUnion through a brand new service called TransUnion ResidentCredit.
TransUnion took a step further with this topic and compared the credit scores of first-time homebuyers with the scores of renters where the apartment rental payment is not reported. They discovered that those who became homeowners since early 2012 experienced a 5.2% increase in their overall credit score over the following year. Like private auto dealerships, most property management companies only report to the credit bureaus when the renters are late on their rents or don’t pay their monthly payments at all. The derogatory item appears on their credit history.
If you are a Coconut Creek renter and you would like to have your monthly payments reported to the credit bureau to increase your credit score, you can talk to your property management company. There’s no guarantee that your landlord or property manager will go ahead and report it, but it is worth a try. If they do, that’s fantastic because then you will later be able to buy a new home and apply for a mortgage loan. If they do not report it, that’s ok. You can always call Ace Mortgage Loan Corporation in Coral Springs, FL and ask for advice on home financing and how to apply for a home loan. Ace Mortgage Loan Corporation is a mortgage lender that is willing and able to help all residents in Coconut Creek get the mortgage they need to be able to move into a new house. Call Ace Mortgage Loan Corporation today!