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Ok, do rent next. Paying rent doesn't count towards your credit score (at least it didn't a decade ago when I was getting my mortgage). And it's a glaring sign
by veggieroll 1y ago
Ok, do rent next.
Paying rent doesn't count towards your credit score (at least it didn't a decade ago when I was getting my mortgage). And it's a glaring signal of how the system isn't built for what it claims: evaluating your ability to pay obligations on time. No, the system is built to trap people in poverty and enrich the rentier class.
- nwah1 1y agoLandlords like the idea of incorporating rent payments into credit scores, since it adds extra incentive to pay on time. Or, phrased differently, extra punishment for failing to pay on time. Framing the current default as a help to the rentier class is just silly. The rentier class are indeed a major cause of stagnation and inequality in our economy, but they are innocent of this one.
- gamerdonkey 1y agoThe current default is that missing a rent payment can harm your credit score, but paying on time will never improve it. https://www.experian.com/blogs/ask-experian/can-late-rent-payments-hurt-my-credit-score/ https://www.experian.com/blogs/ask-experian/can-late-rent-pa... This benefits the landlords for the reasons you outlined, and tenants must interact with the credit industry through additional (often predatory) means in order to build a credit history that may allow them to buy their own home. Further, landlords have an incentive against providing this positive feedback, as doing so makes it more likely that tenants would exit a relationship that is profitable to the landlord.
- veggieroll 1y agoThank you for explaining this issue in more detail.
- daft_pink 1y agoIs having your payments reported to a credit bureau really a benefit to you to allow you to have a better credit or is it a collection activity intended to help the creditor collect? The reason buy now pay it later is being added, is because those lenders are having trouble collecting, so they want to add it to the credit score so there is an additional consequence if they don’t get paid. It’s a collection activity, not something that’s designed to help the payor. Adding rent is mostly a benefit to the landlord not to the poor people.
- x0x0 1y agoThe shitty software my landlord used to use -- the Buildium / Realpage scum -- decided to put a popup on every rent payment trying to get me to pay the Realpage scum $5 to $10 to report the rent payment to the credit bureaus.
- Y_Y 1y agoA popup? How? If you can't pay by cash or bank transfer then wtf are they doing?
- lcnPylGDnU4H9OF 1y agoRealpage offers payments on their website and landlords typically pass on the service costs to their tenants in the form of a $5 “service fee” as itemized by Realpage. Compared to a $10 fee to get a cashier’s check to pay in person (because ACH is done by Realpage), you’re saving $5/mo. (Cash is generally not accepted because they don’t want to be storing cash on location.)
- Y_Y 1y agoWill the horrors never cease?
- al_borland 1y agoIf there is no way to avoid a fee, they should just bake it into the rent price. They just look petty by charging it separately. I’m also surprised by the need for a cashier’s check. I’ve needed those on occasion for a security deposit to move in, but monthly rent was also accepted with a simple personal check.
- ramoz 1y agoHave seen this first hand. E.g. tenants with a terrible credit score, but 36mo of proof on-time rent payments. They've always made their future payments (in my experience).
- sathackr 1y agoJust what we need, every sleazebag landlord who owns 3 apartments and thinks he's hot shit holding his ability to fuck your credit up over your head.
- deleted 1y ago[deleted]