Credit Help For Renters And Others On The Horizon
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Credit Assistance on the Horizon for Renters and Others
Introduction
Great news is on the way for renters and those with limited credit history. A new initiative by PRBC (Pay Rent, Build Credit) aims to create equal credit opportunities for everyone, especially benefiting young and minority borrowers. Michael Nathans, founder of PRBC, believes this can help individuals secure prime rate loans.Understanding the Traditional Credit System
Consider Sue, a homeowner who diligently pays her mortgage and bills. The major credit bureaus?"Equifax, Experian, and Trans Union?"reflect her on-time mortgage payments in her credit score.In contrast, Joe, a renter aspiring to buy his first home, also pays his rent and utility bills on time. However, these payments aren't captured by the traditional credit bureaus, leading to a lower credit score compared to Sue. Consequently, Joe faces higher interest rates when applying for a mortgage. This disparity highlights a significant gap in the current credit system.
The Upcoming Change
Fortunately, the landscape is set to change. According to a Chicago Tribune article by Kenneth R. Harney, a new national credit bureau aims to track payments that traditional agencies overlook. PRBC is dedicated to building credit files for renters, targeting 10 million individuals over the next five years.How PRBC Works
PRBC, led by Michael Nathans, will generate revenue by selling supplemental credit reports to lenders, with CitiMortgage, Inc. already on board. Here are some key features of PRBC's service:- Free Consumer Access: Consumers can access their files online any time.
- Consumer Permission: Lenders can only access files with consumer consent.
- Payment History: Up to 36 months of documented on-time payments can be recorded.
- Diverse Payment Sources: Payment histories from phone, credit, and debit cards are accepted, provided there's a date-stamped electronic receipt.
- Online Banking Integration: Many online banking consumers can have payment information recorded once PRBC is fully operational.
Benefits for Renters and Diverse Borrowers
PRBC's initiative is a game-changer for renters, young individuals, and minority borrowers who struggle to build a credit history through traditional means. Nathans states they are committed to providing equal credit opportunities for all deserving individuals.How to Get Started
Consumers can register for free with PRBC online at [www.payrentbuildcredit.com](http://www.payrentbuildcredit.com).By bridging the credit reporting gap, PRBC offers a promising solution for a more inclusive financial system.
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