Experian, one of three major credit bureaus in the U.S., recently announced it would incorporate rental data in their credit reports, which the company says may help consumers rebuild credit.
Because millions of Americans with low incomes do not have access to credit cards and other financing options, they have a tough time building up their credit histories. The credit bureau says adding rental data to credit reports would help these families demonstrate their creditworthiness to potential lenders.
However, critics of the new proposal say adding rental information may also damage some people's credit even further. This is because beginning in 2012, the company will keep track of late rental payments as well, The Huffington Post reports. Thus, low-income individuals who may be late one month on their rent may end up with bad credit.
Now that another factor will contribute to their credit worthiness, it's even more important for consumers to review their credit reports. Renters should make sure all of their payments are accounted for accurately and fairly on their documents.
If individuals find an errant item on their credit report, such as rental payment marked as late when it was in fact sent on time, they may want to contact a credit repair attorney. A credit repair specialist may be able to work with landlords and credit bureaus to help resolve the questionable item.