People who are conscientious about paying their rent on time may be under the impression that it's helping them build a solid credit score. But according to financial experts interviewed by the Washington Times, these types of payments usually don't contribute to establishing a strong score.
"Rent payments are not typically reported to a credit bureau unless the rent is past due and has gone to collections," said mortgage and financial expert Brent Mendelsen, in an interview with the Times.
However, Anthony Sprauve, director of public relations for the financial services firm FICO, said rent payments may eventually be considered.
"Rental data is an area of growing interest, as it can potentially add payment information to the credit histories of millions of consumers who have little or no credit history," Sprauve told the newspaper.
Because they're already at a disadvantage, renters should begin reviewing their credit reports regularly to ensure that unfair or inaccurate credit reporting won't do further damage to their credit scores.