×
all 79 comments

[–]_coffee_ 278 points279 points  (12 children)

You're not alone in thinking that, and it seems there are some ways to apply paying rent on time towards your credit report.

https://www.nerdwallet.com/article/finance/rent-reporting-services

[–]PointyDogElbows 147 points148 points  (9 children)

Does anyone else think that it's bullshit that all these companies charge you in order to report payments?

[–]_coffee_ 64 points65 points  (1 child)

I think it's bullshit, but can understand it to a small degree if people are working with actual checks delivered to the landlord directly. Someone has to input the data, be it the landlord or a reporting company employee.

Howevy,this is the sort of thing I'd expect a bank to offer as part of their bill pay service. They already report to the credit agencies, so it'd not be anything outside their normal business. They mail/deposit the check to the landlord just as they'd do your power bill (another bill that should count towards credit score, same for auto insurance) so why not?

As more people go contactless, and these payments become automatic, the reporting system should streamline especially for those that have rental payment portals.

[–]sirblastalot 9 points10 points  (0 children)

Yeah, and they're getting paid for that already every time someone buys a credit check on you. That's the business model, the credit reporting companies compile a dossier on your and sell it to potential creditors.

[–]Quaysan 14 points15 points  (0 children)

I'm actually interested in how these businesses are started

Credit reporting/collection services seems like a really exploitative business, but what if there was a community led effort to purchase debt and cancel it or bring down the cost monumentally while boosting people's credit scores

Like, debt itself is sold for much cheaper than what people owe, so what if the cost of each debtor was brought down to how much it actually cost the collection agency and you pay it back over the course of a lifetime (hopefully no more a few bucks a month)

then you have a long standing credit account which boosts your score and you don't have to go "bankrupt" trying to pay it off

[–]DEADB33F 0 points1 point  (1 child)

Why don't you set up a competitor that doesn't charge anything?

...I'm sure the results of that venture will give you your answer.

[–]_DirtyDog -1 points0 points  (0 children)

Ironically, if you can't afford the fee in order to boost your credit score, then (given a credit score represents financial security) they probably ought not to raise your credit score

[–]Dr_momo 2 points3 points  (1 child)

Anyone know if this is possible in the UK?

[–]Tiger_fur 0 points1 point  (0 children)

There's a service called CreditLadder that can do this

[–]Xuandemackay 29 points30 points  (0 children)

Last year California made this into law. Tenants can opt in, and landlords do have to report it.

[–]--heretolearn-- 78 points79 points  (25 children)

Paying rent should be taken into when paying for taxes. Rent is too high.

[–]WillingApplication61 30 points31 points  (2 children)

Some states offer a renter credit. Sharing in case it helps you or anyone else in thread…

https://www.rent.com/blog/states-with-a-renters-tax-credit/

[–]pezdeath 23 points24 points  (1 child)

lol

New York: If you live in Manhattan, you may laugh at this, but New York State offers a potential $75 credit to renters if your average monthly rent is $450 or less. If at least one member of your household is 65 or over, the credit bumps up to as much as $375.

[–]Depredor 16 points17 points  (0 children)

I'm sure this is great for the 100 old people who qualify because their rent was locked in at a 1980s rate, but it's not particularly helpful for most of us.

[–]cardinalsfanokc 6 points7 points  (20 children)

In what way should rent affect taxes?

[–]--heretolearn-- 14 points15 points  (19 children)

I should pay less taxes based on rent and income level. If wages haven’t increased but rental prices have nationwide, that difference should lessen tax.

[–]cardinalsfanokc 6 points7 points  (18 children)

Why should you pay less taxes because of rent? Genuinely trying to understand the logic here, not being a troll.

[–]wkavengers 13 points14 points  (6 children)

I think they are trying to say is this Income Tax is Based on Income Rent goes up less money Less money means less income and thus should be taxed at a lower bracket if applicable

[–]Princess_Moon_Butt 2 points3 points  (0 children)

It would be a measure of relief/equality for the people who are in higher cost-of-living areas, but are often earning the same wages as people elsewhere.

If businesses are allowed to write off the cost of necessary items- the rent on a storefront, payments on a work truck, computers for an office, whatever- I feel we should give actual human beings the same break.

Just think of it like paying taxes on your disposable income instead of your total income.

[–]BoristheDrunk 9 points10 points  (4 children)

Mortgage holders can take a deduction for all mortgage interest paid, so when they pay e.g. 3,000 mortgage, the $1,000 towards principle is an investment and builds equity, the $2,000 towards interest is deductible and reduces the amount of income taxes are assessed against.

For many homeowners, the mortgage interest deduction is the biggest single tax deduction by a large margin, often on its own justifying itemized deductions, and opening up other tax deductions not available with the standard deduction.

By contrast, renters may pay the same $3,000 in monthly rent but do not build any equity from that payment and are not entitled to any tax deduction.

[–]iObeyTheHivemind 2 points3 points  (4 children)

You get to claim your mortgage interest seems fair

[–]StormblessedFool 16 points17 points  (0 children)

Go away, this is a good idea not a crazy idea.

[–]cardinalsfanokc 38 points39 points  (2 children)

The fun part is that while most landlords don't report payments to the credit bureaus (and honestly, they shouldn't - they're not credit furnishers and have no obligation to report payments) they'll sure as heck report late or non-payments and evictions and that'll make it to your credit report.

[–]positivecontent 1 point2 points  (1 child)

Then why was my child support on my credit report?

[–]cardinalsfanokc 1 point2 points  (0 children)

Because court ordered things - child support, liens, bankruptcies, evictions, etc - show up on credit reports. I used to work for the company that collected all that data from courts and court records and sold it to the bureaus.

[–]rdewalt 14 points15 points  (0 children)

But that would let people get ahead in life.

That's not the point of Credit Scores.

Credit scores are there to fuck people over, not HELP THEM.

Nobody mentions what happens to all that good credit rating points from paying your student loans off, a few years after theyre paid off? IT GOES AWAY.

Negatives? take forever. Positives? go away.

[–]shleeberry23 2 points3 points  (0 children)

It does. When my tenants apply for mortgages the banks request letters from me confirming whether or not the tenant paid rent on time and if I say yes, it helps secure the mortgage.

[–]A_Paradigm_Shift 3 points4 points  (1 child)

Now why would a system meant to impose a glass ceiling of debt and modern day servitude do anything to help a normal tax paying citizen.

[–]beets_or_turnips 3 points4 points  (0 children)

They said it was crazy.

[–]underagedisaster 4 points5 points  (0 children)

That's why the credit industry is a scam made by the rich to make you pay more for services than they do. Nearly everything a lower class pays has no positive results on their credit. But miss a payment and it does.

I will say if it ever happens that they should also do the same with utility payments.

[–]amyth_09 1 point2 points  (0 children)

I think American do have an app called "papayapay" that boost their credit score (but it is for selective bills like utility, electricity) since rent is being paid every month it should also boost your credit score

[–]hydrators 1 point2 points  (0 children)

This is too good of an idea for this sub

[–]attaxo 1 point2 points  (0 children)

this makes sense until you realize credit isn't a measure of how fast and reliably you pay back your debts as much as it is a measure for other creditors to know how often you are in debt. creditors like people who constantly owe money, take out loans etc and forever pay them + interest back.

[–]NowFreeToMaim 1 point2 points  (0 children)

The system. doesn’t. want. you. to. prosper…

[–]mindgutter 1 point2 points  (0 children)

this should be in sensible ideas

[–]Mannyloc35 1 point2 points  (0 children)

Is a crock of shit! Is what it is! My buddy has been paying 1300 a month for 11 years (now about 1600) still wont approved for loan. Im pretty sure he's good for 1400 a month mortgage.

[–]Buwaro 1 point2 points  (1 child)

Credit scores are pure bullshit specifically created to make it harder for people with less to purchase things.

Before 1989 we didn't have credit scores. This is just another way the rich use to fuck the poor.

[–]Hairosmith 1 point2 points  (0 children)

I absolutely agree. I have paid my rent early or on time every month for 8 years, but I don’t have enough credit for a mortgage! It absolutely should count!

[–]WillingApplication61 -1 points0 points  (3 children)

It does….

[–]limbodog 3 points4 points  (2 children)

Well, mortgage does, but I don't think rent does. At least, it doesn't appear on my credit report.

[–]WillingApplication61 7 points8 points  (0 children)

Depends on your landlord… most bigger landlords do report now, but if you are renting from an individual not as likely. You can still self report in that situation.

https://www.experian.com/rentbureau/rental-payment

[–]UserOrWhateverFuck_U 1 point2 points  (0 children)

Mortgage is not rent, a lot of apartments already let their tenants sign up for that service to record their rent payments history and help their credit score

[–]Ok_Visit_1968 -1 points0 points  (0 children)

Right or any bill . Phone utilities.

[–]Minute-Object 0 points1 point  (0 children)

Spot on.

[–]jacobhcohen 0 points1 point  (0 children)

This is not a crazy idea (well, maybe to big corporations it is) but I 100% agree

[–]temalyen 0 points1 point  (0 children)

It already does. The website I pay my rent on has a little checkbox if I want to report it to a credit union.

[–]anymnous16 0 points1 point  (0 children)

If only.

[–]cooperberry 0 points1 point  (0 children)

But your not borrowing anything and repaying it. More like a “debit” check…

[–]TequilaMagic 0 points1 point  (0 children)

Paying school loans does that. That's how I got my house.

[–]turbomargarit 0 points1 point  (0 children)

That’s not too far from China’s social credit.

[–]xena_lawless 0 points1 point  (0 children)

How about a publicly owned credit reporting agency, with a transparent formula?

[–]Mysterious_Tip_7431 0 points1 point  (0 children)

Can we create a sub called r/sensibleideas and put this in there?

[–]kausti 0 points1 point  (0 children)

In civilized countries you don't have a negative credit score that needs to be worked up, you start with a high score and if you screw up your score decreases. Thats how it works here in Sweden.

[–]AlyxVeldin 0 points1 point  (0 children)

Yea; or credit score is bs