renter's insurance quotes logo


Renter's Insurance TN

Credit Help For Renters And Others

By James Dimmitt, Fri Dec 9th

Sue is a homeowner and pays her mortgage and other bills on time like a good credit consumer. Sue’s on-time mortgage payments arereflected in her credit score profiled by the three major credit bureaus; Equifax, Experian and Trans Union.

Joe on the other hand is a renter, who wants to buy his first home in the near future. He pays his rent on time every month as well as his phone, utility bills and low cost renters insurance. Joe is also a good credit consumer, but his on-time payments are not reflected in his credit profiles. Why? Because the major credit reporting agencies are not set up to track this type of payment and therefore they are not reflected in Joe’s credit score. Chances are good that Joe’s credit score will be lower than Sue’s because his on-time rent payments go untracked by the credit bureaus.

As a result, Joe will be quoted a higher interest rate and higher fees to his lender when he applies for his first home mortgage. Seems a bit unfair doesn’t it? The good news for Joe and other renters like him is that the credit reporting system is about toc hange.

In a recent Chicago Tribune article, reporter Kenneth R. Harney points to the creation of a new national credit bureau whose “sole mission is to track the payments that nobody else tracks.” The new credit reporting agency PRBC (Pay Rent, Build Credit) wants to build credit files on as many as 10 million renters nationwide over the next 5 years.

According to PRBC’s founder and chief executive Michael Nathans, the new bureau will earn revenue by selling supplemental creditreports to lenders. CitiMortgage, Inc., one of the nation’s major home lenders, is already a subscriber of the new service.

Some other highlights of PRBC’s service include:

- 24/7 access to online files by consumers, free of charge. - Consumers must give permission to have their files accessed by lenders. - Consumers can input up to 36 months of documentedon-time payments. - They accept payment histories from phone,credit and debit cards so long as the source (merchant) can send a date-stamped electronic receipt of payment. - Many consumers who bank online can have their payment information recorded by PRBC once the bureau becomes fully functional.

PRBC can benefit not only renters but also young and minority borrowers who have little or no credit history with the traditional bureaus. “We think we can help create equal credit opportunities for everybody who deserves a a prime rate loan", Nathans said.

Get low cost renters insurance quote comparisons at

About the author:© 2005, Author: James H.Dimmitt James is editor of “To Your Credit” a FREE weeklynewsletter focusing on managing your personal finances andcredit. Subscribe and get a FREE copy of your credit report whenyou visit:

Here's some more of our recent renter's insurance articles you may find of interest...

Renters Insurance 101 Explained
By Joseph Kenny
If you rent a home or apartment instead of owning a house outright, you may not think you have a need for insurance or believe that it is even available to you for that matter. The truth of the Read more...
The Elements Of A Renters Insurance Rate
By Michael
So many advantages are available to those who are working as a landlord on rental property in the form of the rental property tax deduction. Rent, payment to cancel a lease, expenses paid by the Read more...
Turf Wars: Author/landlord Offers A Few Words Of Advice For Tenants
By Donald Nelson
Richard Rusdorf, author of "The Landlord's Handbook: A Complete Guide to Managing Small Residential Properties," managed a 400-plus-unit apartment building in Chicago 20 years ago. The past Read more...