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Remember when credit score algorithms didn't use rent payments?
About five years ago, I was trying to get a car loan in Phoenix and got denied because my score was low, even though I'd paid rent on time for a decade. The old system just ignored that data. Now, after a lot of public pressure and new laws, some major scoring models finally factor in rental history. It took years of arguing that the old way unfairly hurt younger people and renters. Has anyone here actually seen their score go up because of this change?
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angelarivera2mo ago
My friend in Denver got a 40 point boost, same as @caseythompson.
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samk772mo ago
Rent reporting seems like a quick fix but it's just gaming the system. Those big jumps are often temporary and don't reflect real credit health. Landlords aren't banks, and treating them like creditors creates a weird distortion. You're basically paying for a better score instead of building it through actual loans or cards. It sets a bad precedent where your housing costs get financialized. The whole point is to show you can manage debt, not that you can pay your basic bills on time.
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paulw536d ago
Those big jumps are often temporary and don't reflect real credit health" - that's exactly what bugs me about it. It reminds me of how people chase quick dopamine hits with like, phone notifications or social media likes, you know? @angelarivera's friend getting a 40 point jump sounds nice but I bet it fades when the algorithm figures out the source isn't a real loan. I've seen friends do the same thing with utility reporting services, and six months later their score settles right back where it was. It's like we're optimizing for a number instead of building actual financial habits.
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