Experian, one of the three major U.S. credit bureaus, now lists consumers' rent payments on credit reports.
The company says this change will help millions of college students, recent graduates and immigrants build good credit simply by making timely payments.
"Given that one-third of the U.S. population rents, we felt it was imperative to reflect the true creditworthiness of those individuals who responsibly pay their rent," said Brannan Johnston, vice president and managing director, Experian RentBureau.
However, this could cause many credit report errors due to rent disagreements and payment disputes between landlords and tenants. This information could then lead to credit score damage and make it harder for consumers to apply for new loans, credit cards and insurance policies.
Renters who experience a credit report error from one of these disputes can benefit from contacting a credit repair company. By enlisting a credit repair attorney to help them with their case, consumers can gain the valuable advice of a professional with an understanding of how to mediate and resolve these claims.