renter's insurance quotes logo


Insurance Quotes Renter Mobile Home

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...

Landlord Foreclosures - Let The Renter Beware
By Alex Shay
Something very interesting with regards to real estate, but unbeknownst to most renters of homes or apartments, is that renters must be very aware of exactly what they are getting themselves into Read more...
What Is Renter's Insurance & Do I Need It?
By dan the roommate man, Fri Dec 9th
If you are moving into an apartment, you may want to consider investing in insurance. Along with the first month's rent, chances are you will be asked to pay a security deposit. This is a type of Read more...
Four Rules Every Renter Should Know
Whether you're renting for three months or three years; these rules apply to anyone wanting to be a responsible renter.1. Get everything in writing. Anything not specifically outlined in Read more...