Paying rent can now help boost your credit score

Paying rent can now help boost your credit scoreA significant portion of one's credit score – 35 percent – is attributed to their ability to pay bills on time. This typically refers to payments on loans, credit cards, mortgages, medical bills and more, with delinquencies on an individual's account resulting in the downfall of his or her score. Consumers with a bad credit history will now have extra opportunities to improve, as Experian recently added rent to its credit reports.

Young borrowers and those in less-than-ideal financial standing can rejoice, as this new move will make it a bit easier for consumers to raise their score. The new policy was prompted by a slump in homeowner rates, according to Chicago Breaking Business, with the U.S. experiencing its lowest numbers since 1998.

The statistics will come from RentBureau, which was recently acquired by Experian. Landlords and property managers routinely report rental payments to the company from 8 million residents, reports the news source.

The credit bureau began implementing rent history into its reports last month, which it claims makes Experian the first agency of its kind to incorporate such data into score calculations.