New rent reporting tool launched in the first state
DELAWARE – In the first state a new tool is now available for renters to help build their credit.
Officials say it makes credit building simple without taking on more debt. “We are so excited about this program,” says Laurie Jacobs, with the Delaware State Housing Authority.
The Delaware State Housing Authority is talking about the Rent Reporting program. It’s goal is to help low to middle income residents build their credit by submitting past rental payments. “The pilot will offer 12 months rent reporting moving forward and it will also offer 24 months of rent reporting in the past as well. And we all know that on time payments really help increase a credit score,” says Jacobs.
Homebuyer Delmarva Dave says he agrees with the program, however in the future hopes it will be available to all backgrounds. “We’ve looked at tenants of all backgrounds, high income low incomes, credit is an issue at every single level,” says Dave Schmidt.
For now the program could give those eligible a better chance to set up for a successful future. “And that will allow you to remove barriers to home ownership, remove barriers to getting business loans, and any other type of financing options too,” says Jacobs.
One finance option could be buying your own home. After renting and building your credit with this tool, Delmarva Dave says you should have the standard credit score of 600 to get your own home.
However, it may not be time to buy a home for everyone. “It really depends on who the buyer is, interest rates are obviously a lot higher than a year ago. So if you don’t have to buy a house then you probably shouldn’t but some people are in that stage in life where they’re having children, moving out, they’re getting new jobs,” says Schmidt.
In addition the Rent Reporting program will offer financial education. “Also offers financial counseling as well, as well as ID protections so its more than just rent reporting. You’re getting a whole package of services that will help you build credit and hopefully remove barriers to home ownership,” says Jacobs.
Delmarva Dave says housing is getting harder and harder for renters even going as far as calling it a housing crisis. Click here to find more about the tool.