Help Tenant Building Credit

9 Replies

Has any landlord attempted to work w/ credit company to assist tenant build credit during their leasing period?  Any recommended methods, website or company you use for this propose and also to encourage tenants pay full rent on time.

Thank you

Hello @Mike H. Erentpayment will report payments to Transunion, so that may be a good option. They do ACH transactions and Each one costs $3- which can be paid by the tenant, the landlord or split.

I have helped a tenant who was doing a rent to own improve credit to close on the property.  I basically sat with her and just advised her of how to use her credit in order to improve it.  Its all of the basic stuff that anyone here on this site know if they have good credit.  We had time to build it, so it wasn't a huge issue.   They basically didnt charge over x amount of a credit card and waited until the bill came in so they know the purchases hit their report, and then paid the bill in full each month.  In their particular place, they were advised not to seek any new credit, etc.  The score improved and we closed.  I do have a friend who hired a particular law firm that specializes specifically removing negative comments, etc from credit reports.  If you are interested, inbox me, and I'll ask him the name as it escapes me at the moment.

Thanks @Jennifer L.  

While posted the question to the community, I have also done some research and here are the few options. 

Cozy.co - Online Payment & Renter screening/application website. Free transaction for both Tenant & LL; Tenant pays for application.

I end up using both Cozy.co and eRentPayment.com for different tenants.  This seems to work well so far.  Only hold back w/ Cozy.co is they are still developing, so the feature is somewhat limited compare to eRentPayment.

Watch that you don't do some thing that would backfire categorize you as a regulated or needing a license.

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As a Realtor, I would set up a prospective buyer with a low credit score or other credit issues with a mortgage broker whom I consistently worked with and they would meet with them and get them on a path to become finance-able even if it was a 12 month of longer outlook. I would think you could do the same with tenants as they would eventually possibly look to purchase and obtain a mortgage hopefully with that mortgage broker. Also they always did this as a free service in order to secure future business. 

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Just a side note: Using these services may not be as helpful to your tenants as you may have hoped, if you dig deeper in to the details from each Credit Reporting Agency you can see where rental payments will have no impact on the scores most lenders use in credit granting decisions, for example; Experians offering results in a tradeline that impacts Vantage scores or Experians own Plus Score, neither of which are used by.....well anybody for credit approvals.

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