Renting and credit history

[Poorgirl]

I have been renting for two years now and notice that it’s not reflected it on my credit report.. I have always been on time with my rent and wanted to know how can I get that reflected on my credit report… If I do this, will it increase my credit score? In addition, I plan to move to a new apartment but worry my low credit score might stop me from getting into a great apartment. I don’t understand why apartment companies don’t look at a renter’s previous renting history only instead of an entire credit report that might show you were late paying Discover card…

I was told they look at all the bills you owe to estimate if you’ll be able to pay them rent and as well, if you have a history of not paying on time. My mother told me apartment companies used to only care if the person had a job and no criminal record.

[Revco]

Usually rentals don't show up on the credit report. You can request that the CRA add a manual account, but I'm not sure if it affects your score as it's not continually updated.

Unfortunately, these days, credit history is used for just about everything. From being able to get a job, to paying lower insurance rates, to being able to rent a place. It's not right...but it's certainly fueled my desire to go to "war" with CA's and the CRA's.

I've found that very few places ACTUALLY check your credit history - they just make you sign a waiver and notify you that they reserve the right. They really are more interested in your rental history and will call previous landlords. It's even less common for the smaller apartments and homes owned by individuals or small management companies to check your CR. They'd rather profit off your application fee than spend it on a CR.

That's my thoughts on the matter. Rented three different places in the last five years - all had me sign the waitver - none checked my CR. They did all check my rental history though. It may have helped that my landlord's raved about me. Not sure.

[bellatragedia]

I work with many different local and national real estate property management companies, and they all do credit checks and background checks, including your past rental history, and your employment history. If it is an apartment community that is owned by a "normal" rental management company they will check your credit report before approving you. Depending on your credit they will either deny you, approve you, or approve with additional security deposit up to one months rent (typically).

If it is not managed professionally, then chances are you can get away with them not checking your credit as they may not even have a subscription service to the CRA's.

Personally, I have never rented anything from a community that hasn't checked my credit. I have always rented from professionally managed apartments and townhouses though.

BTW, that is illegal to take a fee for a CR that is never run. If that is being done, I would definitely report them to Fair Housing for it. Unless you sign something that says they can charge you fees and you dont' care if they use it for anything or just keep it.

As to your rental history being reported, this has never been done in the past, but it is now being offered as a service by rent reporting companies. They will report your rent, for a yearly or monthly fee. Do a Google search online to find out more about them. I am not sure I am comfortable with how they report it though as it shows your history, but may tank your FICO scores in the process because of how it's reported. Example: you pay $1000 per month for rent, they report the tradeline to the CRA's as a $12000 (that's $1000x12 months) limit, and the unpaid balance is what ever is left for you to pay on your lease for the year. If you have left to pay for 8 more months that would show up as a $8000 balance on a $12000 limit. Makes you look a bit like you maxed out your credit line, and that wouldn't be great on your FICO's. It may be worth investigating however.

[Methuss]

They would have to report it as a residential lease to the CRAs, not as an open ended credit account. If one of those reporting companies were to list it like a credit card, that would be false reporting.

[Poorgirl]

Thanks everyone for the advice....