KANSAS CITY, Mo. —In a development likely to affect many members, especially younger member, rent reporting to credit bureaus could significantly change the credit scores of nearly 60% of U.S. renters, with many seeing meaningful improvements but others experiencing only modest gains or even declines, according to new research by Ying Lei Too, a senior economist in the Economic Research Department at the Federal Reserve Bank of Kansas City.
The research suggests rent reporting could be particularly important for renters who have struggled to access mainstream credit because they have limited or nonexistent credit histories.
In the United States, consumers with low or no traditional credit scores, such as FICO or VantageScore scores, often face significant barriers to obtaining affordable loans because lenders rely heavily on those scores to assess creditworthiness. However, some consumers may be financially responsible despite lacking sufficient traditional credit data.
Supplementing Traditional Info
As the CU Daily has reported and as the research noted, rent reporting—the practice of landlords or tenants reporting on-time rent payments to credit bureaus—has emerged as a way to supplement traditional credit information. Newer versions of both FICO and VantageScore models incorporate reported rental payment data when calculating credit scores.
A 2025 survey by TransUnion found that 13% of renters had their rent payments reported to credit bureaus. The report noted that figure is likely to increase as more renters seek to build credit histories and more landlords use reporting to encourage on-time payments.
The study found that approximately 43% of U.S. renters could experience relatively large improvements in their credit scores through rent reporting. Another 17% could see only modest improvements or, in some cases, declines in their scores, particularly if they have histories of missed rent payments.
Impact Could be Greater
The research found the impact could be even greater among renters with unmet credit needs—those who have difficulty obtaining mainstream credit.
Among those renters:
- Approximately 48% could see relatively large improvements in their credit scores.
- About 31% could experience only modest improvements or even declines.
By comparison, among renters without unmet credit needs:
- About 40% could see significant score improvements.
- Approximately 9% could see only modest gains or declines.
The economist concluded that while rent reporting has the potential to expand access to credit for many consumers, its overall effect will depend on both the type of rent reporting used and each renter’s existing credit profile.
Not Universally Beneficial
The study also noted that rent reporting is not universally beneficial. While positive rental payment histories can help establish or strengthen credit files for consumers with limited borrowing histories, missed rent payments could negatively affect credit scores, potentially reducing access to affordable credit.
The research concludes that as rent reporting becomes more common, its role in shaping consumers’ access to mainstream financial services is likely to grow, particularly for renters seeking to establish or improve their credit histories.
For the full report, go here.
