How Can Rent Reporting Boost Renters’ Credit Score?

In the U.S., the term “credit invisible” isn’t just a financial jargon — it’s a harsh reality for 26 million people, making up 11% of the population. Adding the 21 million, or 8%, who do not even have enough credit history to score, that’s a significant chunk of people who are missing out on mainstream financial opportunities.


The struggle hits harder in low-income neighborhoods, where nearly 30% are considered credit invisible, and another 16%, who don’t have enough credit history to score.1


For property managers and landlords, these statistics aren’t just numbers on a page, they are people trying to make ends meet and emphasize an opportunity to bridge the gap between financial visibility and enhanced financial access.

To address this, Sperlonga Data and Analytics partnered with Freddie Mac Multifamily. This  collaboration simplifies the process of rent reporting, especially for those properties financed by Freddie Mac. Not only does this partnership provide an avenue for residents to improve their credit, but it also aids owners and management companies in boosting their NOI.


We are dedicated to reporting on-time rent payments to major credit bureaus like Equifax, Experian, and TransUnion. By doing so, renters can witness a credit boost simply by staying consistent with their most significant monthly expenditure — their rent. The best part? For Freddie Mac-financed properties that will enroll in this program on or before December 31, 2023, we will offer this rent reporting service at no charge for the first year. Check if you qualify.


Credit score is a numerical expression of a person’s creditworthiness, based on several factors including payment history, total debt, credit age, and types of credit used. Lenders rely on credit scores to evaluate the likelihood that an individual will repay debts. Contrary to popular belief, not all financial activities affect your credit score, and that’s where rent reporting comes in.


In simple terms, credit scores work like this:

  • If renters pay their bills and loans on time, their credit score goes up, and banks feel more confident lending them money.
  • If they don’t pay on time or miss payments, their credit score goes down, and banks might not want to lend them money.

When renters have a high credit score, they can get loans with lower interest rates, and it’s easier to get approved for credit cards, mortgages, and car loans. If their credit score is low, it can be tough to get these things, or they might cost them more in interest.


Rent payment reporting can enhance a renter’s credit score in several ways:


  • Increasing On-Time Payment History – Since payment history is a significant component of a credit score, consistent on-time rent payments can boost this aspect.
  • Enhancing Credit File Thickness – Rent reporting adds more data to their credit file, enhancing its “thickness,” especially beneficial for those with a limited credit history.
  • Potential Positive Impact on Credit Utilization – By broadening the types of credit, rent reporting may positively affect the credit utilization ratio.

The advantages of rent reporting aren’t confined to the renters; landlords and property managers benefit from here, too. Here’s how:


  • Encouraging On-Time Payments – By knowing that their rent payments are tied to their credit scores, tenants are more likely to prioritize timely payments. This helps in reducing the hassle of chasing late payments for landlords and property managers.
  • Attracting Responsible Renters – Advertising rent payment reporting can draw responsible and credit-conscious renters, thereby creating a more stable tenant base.
  • Strengthening Relationships – Implementing a system that can help tenants build credit fosters a positive relationship between renters and property management. It shows that you care about their financial well-being, not just their rent check.

If you want to learn more, reach out to [email protected] or visit this link https://sperlongadata.com/sperlonga-free-consultation/ to schedule a free consultation.


1 MoneyGeek. How Many People Are Credit Invisible in the US? April 2, 2023.