PRBC
can benefit not only renters but also young and minority borrowers who
have little or no credit history with the traditional bureaus. “We
think we can help create equal credit opportunities for everybody who
deserves a a prime rate loan, “ Nathans said.
Sue is a homeowner and pays her mortgage and other bills on time like a
good credit consumer. Sue’s on-time mortgage payments are reflected in
her credit score profiled by the three major credit bureaus; Equifax,
Experian and Trans Union.
Joe on the other hand is a renter, who wants to buy his first home in
the near future. He pays his rent on time every month as well as his
phone and utility bills. Joe is also a good credit consumer but his
on-time payments are not reflected in his credit profiles. Why? Because
the major credit reporting agencies are not set up to track this type
of payment and therefore they are not reflected in Joe’s credit score.
Chances are good that Joe’s credit score will be lower than Sue’s
because his on-time rent payments go untracked by the credit bureaus.
As a result Joe will be quoted a higher interest rate and higher fees
to his lender when he applies for his first home mortgage. Seems a bit
unfair doesn’t it? The good news for Joe and other renters like him is
that the credit reporting system is about to change.
In a recent Chicago Tribune article, reporter Kenneth R. Harney points
to the creation of a new national credit bureau whose “sole mission is
to track the payments that nobody else tracks.” The new credit
reporting agency PRBC (Pay Rent, Build Credit) wants to build credit
files on as many as 10 million renters nationwide over the next 5 years.
According to PRBC’s founder and chief executive Michael Nathans, the
new bureau will earn revenue by selling supplemental credit reports to
lenders. CitiMortgage, Inc., one of the nation’s major home lenders, is
already a subscriber of the new service.
Some other highlights of PRBC’s service include:
- 24/7 access to online files by consumers, free of charge.
- Consumers must give permission to have their files accessed by lenders.
- Consumers can input up to 36 months of documented on-time payments.
- They accept payment histories from phone, credit and debit cards so
long as the source (merchant) can send a date-stamped electronic
receipt of payment.
- Many consumers who bank online can have their payment information recorded by PRBC once the bureau becomes fully functional
PRBC can benefit not only renters but also young and minority borrowers
who have little or no credit history with the traditional bureaus. “We
think we can help create equal credit opportunities for everybody who
deserves a a prime rate loan, “ Nathans said.
Consumers can register for free with the new bureau online at http://www.payrentbuildcredit.com.
