Reporting On-time Rent Payments
to Equifax, Experian, and TransUnion Helps Tenants Build and
Boost Credit Scores
NEW
YORK, March 28, 2024 /PRNewswire/ -- RentRedi,
an award-winning property management software that simplifies the
renting process for both landlords and renters, has expanded its
on-time rent reporting to all three major credit bureaus: Equifax,
Experian, and TransUnion. The ability to report on-time rent
payments helps tenants build and boost their credit scores, while
RentRedi data shows that landlords are likely to see a 13% jump in
on-time rent payments when using the RentRedi Credit Boost
feature.
Tenants are more likely to pay rent on time
when payments are reported to major credit bureaus to boost their
scores.
RentRedi Credit Boost reports on-time payments to the three
credit bureaus, and when combined with the ability for tenants to
schedule automatic payments through the RentRedi app, there is
added incentive and convenience to being punctual with rent
payments. For example, RentRedi finds that rental units with
tenants who have "poor" to "fair" credit scores (in the 300-669
range) yield on-time rent payments at a rate of 93% when using the
credit boosting feature. Consequently, 7 in 10 renters are more
likely to make on-time rent payments when their landlords report
payments to a credit bureau, according to a TransUnion report.
"Credit boosting through rent reporting is a win-win for both
landlords and tenants," said RentRedi Co-founder and CEO
Ryan Barone. "We are one of the few
property rental software solutions to offer reporting to all three
credit bureaus, providing a unique opportunity for tenants to enjoy
the benefits of improved credit scores. These benefits also
encourage on-time payments, making rent collection easier for
parties on both sides of the rental process."
Reporting 12 months of monthly, on-time rent payments can
improve credit scores by up to 26 points, with 60% of renters even
seeing improvements after the first month. Higher credit scores
give renters access to lower interest rates for car, home, and
other types of loans. They can also increase credit limits and
waive or reduce deposits to open utility or cell phone accounts.
Ultimately, boosting credit scores makes renters look like more
attractive tenants during the application and screening process,
while also reducing the barriers to eventual homeownership.
In November 2023, a Fannie Mae
poll revealed that more than 80% of renters want their on-time rent
payments to be factored into their credit scores. Therefore, by
offering this benefit as an amenity, landlords can make their
properties more attractive to current and prospective renters —
particularly given that TransUnion also reported that 67% of
renters said they would choose an apartment that offers payment
reporting over one that does not offer that feature.
In addition to providing credit boosting, landlords that use
Rentredi have a competitive advantage because they can offer their
tenants the convenience of 24/7 maintenance management and the
RentRedi Renter Perks Program.
ABOUT RENTREDI
RentRedi offers an award-winning, comprehensive property
management platform that simplifies the renting process for
landlords and renters by automating and streamlining processes. For
landlords, RentRedi provides all-in-one web and mobile apps to
collect rent, list and market vacancies, find and screen tenants,
sign leases, and manage maintenance and accounting. For tenants,
RentRedi's easy-to-use mobile app allows them to pay rent, set up
auto-pay, build credit by reporting rent payments to major credit
agencies, prequalify and sign leases, and submit maintenance
requests.
Founded in 2016, RentRedi is VC-backed and a proven leader in
the PropTech market, being named an Inc. Power Partner, a GetApp
Category Leader, a Capterra Established Player, and a G2 High
Performer and Momentum Leader based on the software's user ratings
and popularity. To date, RentRedi has more than $20 billion in assets under management with
nearly 200,000 landlords and tenants using the platform. The
company partners with technology leaders such as Zillow,
TransUnion, Realtor.com, Plaid, Stripe, and Sure Insurance to
create the best customer experience possible. For more information
visit RentRedi.com.
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SOURCE RentRedi