CHICAGO, IL--(Marketwired - Oct 21, 2014) - Nearly half (48 percent) of renters mistakenly believe rental payments are automatically reported to credit bureaus, according to a new national survey of renters released today by TransUnion.
The survey findings reveal widespread confusion about which payments are included in a consumer's credit history. A majority wrongly believe payments for cable and internet fees (53 percent), utility fees (54 percent) and cell phone bills (52 percent) are regularly reported to credit bureaus. At the same time, less than a third (29 percent) correctly identified mortgage payments as data that is regularly reported to credit bureaus.
"Most consumers report paying rent on-time, but many don't realize that until now these payments are not boosting their credit histories," said Ken Chaplin, senior vice president of TransUnion. "Renters should be aware that property managers are starting to report payments to credit bureaus and they should be consistently monitoring what is being registered on their individual report."
Including rental payments in calculating credit scores could be a positive development for many renters. More than three-quarters (77 percent) of respondents say their credit scores would potentially benefit if rental payments were reported to credit bureaus, compared to reporting cable bill payments (68 percent), cell phone (67 percent), and utility (69 percent). Nearly eight in ten (79 percent) survey respondents said they prioritize rental payments above all other monthly bills.
"Expanding the share of property managers who report rental payments will produce more accurate information that truly reflects how consistently consumers meet their financial obligations," said Chaplin. "It will benefit renters who want to help their credit scores and landlords who want to attract renters who pay rent on-time."
More than half of renters surveyed (51 percent) also reported they would be more likely to choose a property if they knew their landlord would report their rental payments to credit bureaus.
Using TransUnion's recently announced ResidentCredit product, landlords can more easily report rental payments to credit bureaus. As a result, it is increasingly important for consumers to actively monitor their credit through Credit Monitoring tools to understand how their monthly payments impact their credit score.
For more information about credit monitoring, please visit: http://www.transunion.com/personal-credit/credit-management/credit-monitoring.page/
About the Survey
The online survey includes responses from 1,001 U.S. consumers between the ages of 18 and 64 who are renting the home or apartment in which they currently live. The survey was conducted between September 10, 2014 and September 16, 2014.
About TransUnion
TransUnion Interactive, Inc. is a consumer subsidiary of TransUnion. As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in more than 33 countries on five continents. www.transunion.com. Follow us on Facebook at http://www.facebook.com/TransUnion.
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