Lower your Loan Rates by Simply Paying your Rent
Why is is important to build and keep a high credit score? Because sooner or later, you’re going to want a car loan, or new credit card. Or, you might want to take advantage of an offer for no payments for six months or a year on a major purchase. Whether or not you’ll get the loan and how low the interest rate might be, depends on your credit score, the higher the better.
Earlier this year, One of the nation’s largest credit reporting companies, Experian, announced it would begin including rental payments in its credit score formula.
This means that paying your rent on time can help boost your credit score. On the other hand, paying late, may hurt your credit score. With credit scores, the higher the better.
Even some auto insurance companies base your rates on your credit score, and now, some employers have been using them when assessing job applicants, although this is getting the attention of government agencies..
In response to Experian’s decision, various websites have started up to help consumers make the most of their rental payment from a credit score angle. Williampaid.com, for example, will not only pay your rent for you automatically-it deducts your payment from your bank account for a $1.75 monthly fee-it will also report your rental payment to FICO, the main credit-monitoring firm, for $2.50 per month.
There’s also a new Website called RentReporters.com that says it can verify residential rental payments of 100 millionU.S.renters and transfer that information to consumer credit reports, thus helping them to boost their credit scores. (Estimate your credit score for free.)
At any rate, it pays to have a good credit score, and now the simple act of paying your rent on time can help you earn one. One good way to do that is to use our online pay option. It’s really easy, so give it try.