Ask those people you know if they can quantify the real benefit to their Credit Score? eg., if I have rent of $2.5k per month and I pay it on time every month for a year, and at the start of the year my Credit Score is 730, assuming nothing else changes apart from me paying the monthly fee to enact the credit score add on, what, precisely, will my Credit Score be at the end of the year? I asked Rent.com this early on and did not get a straight answer.
I cannot see the credit agencies giving too much weighting to someone simply paying a bill on time And anyway, this 'benefit' is not even in Rent's control - surely they cannot dictate to the agencies how rental payments should be assessed? Yet, Rent are taking a fee for it....
I also cannot see banks or other lending institutions respecting this - they want the credit scores they use to assess loan applications to genuinely reflect a potential customers status; if it does not, it will cease being used. You should not, and I would think cannot, 'buy' your way to a better credit score just because you choose to pay your rent via one means over another. That is, in a sense, discrimination.
No matter which way I look at this, I think the whole credit score thing is a furphy, and would really appreciate more detail on the benefits being spelled out (or dare I say it, guaranteed) by Rent, if I'm to buy back in.
RNT Price at posting:
9.9¢ Sentiment: None Disclosure: Not Held
