Rental management software provider RentSpree has launched Credit Builder, a rent reporting feature designed to enhance renters’ financial health and facilitate their journey toward homeownership. Through Credit Builder, RentSpree facilitates secure online rent payments that can automatically be reported to TransUnion.
“No pun intended, but let’s give credit where credit is due,” said Michael Lucarelli, CEO and Co-Founder of RentSpree. “Building a credit history through rent payments can significantly impact loan approvals, especially for those with limited credit history. RentSpree aims to facilitate this process and empower renters to achieve their financial goals, whether it’s securing a loan, purchasing a vehicle or buying their dream home.”
Despite being one of the largest monthly expenses for renters, usually accounting for between 30% and 40% of their income, rent payments traditionally have not contributed to their credit history. Unlike homeowners, renters do not build credit with each timely rent payment. Recognizing the significance of rent payments in the financial success of individuals, Fannie Mae and Freddie Mac recently began to consider this monthly financial outlay as part of borrowers’ credit histories. As consumers are unable to directly report on-time rent payments, RentSpree’s Credit Builder feature bridges the gap.
“Credit Builder is a powerful tool that can truly help renters and landlords alike,” said Lucarelli. “Research shows that when payments are reported to credit bureaus, seven out of 10 renters are more likely to pay on time. So, this feature is going to benefit those who are already punctual while encouraging others to develop greater consistency. It’s a win-win.”
