Online Rent Payment | Coventry Apartments

Posted on September 27, 2016

Rent reporting is a huge new opportunity for millions of renters. Coventry has teamed up with RentTrack to ensure that you build credit history with each rent payments.

What is a debt-free way to build credit history?

Rent payments are different than any other type of account that might end up on your credit profile. First, rent payments typically aren’t considered ‘debt’. You don’t have some large outstanding or recurring balance that you are trying to pay down in order to establish credit. Second, the resident (not the creditor) decides to report this payment data to the bureaus by “opting-in” to submitting payment history. This is not the case when it comes to any other debt-based payments such as credit cards, auto loans, personal loans, student loans or a mortgage. In all those instances, the creditor typically reports without any choice on the part of the payor. Finally, some bureaus give you a one-time out—see the next question for details on this nuance.

Opt-in… Does that mean there is an opt-out?

Well, yes and no. “Opt-in” puts the resident in control of whether or not they want their rent payment history to end up on their credit report. However, once the resident starts reporting, what will remain on the credit profile if a resident turns off credit reporting depends on the bureau? Even different departments within a single bureau have different guidelines for how long they will keep the data. While some might remove the payment history if a resident opts out, the resident should assume that their payment history will remain on their credit profile going forward.

Who is eligible to report rent payments?

Any resident named on a lease is eligible. Coventry uses RentTrack for online payments. RentTrack can report your payments to all three major credit bureaus—Equifax, Experian and TransUnion.

What impact will rent reporting have?

Each bureau collects different types of information, uses unique scoring models and reports to potential lenders through a variety of products. At a minimum, basic rent payment history will end up on a consumer’s credit report for them and others to view. This is only the beginning, however, as bureaus are starting to incorporate rent payment history into popular scores like the tri-bureau Vantage score.