Expert Realtors - Dallas Builder Associations Realtor of the Year

Call Now (972) 317-5900

Thinking about buying/selling? View our Listing Presentation that explains who we are, what we do, and how we do it.

Menu

Buy

Sell

Could Paying Rent Now Play A Role In Buying A Flower Mound Home Later?

Most people are aware that as homeowners, paying their mortgage on time can boost credit – but what about those that rent a home or apartment? If you’re currently a renter who may want to consider purchasing a North Texas home in the future, you will be interested to know how paying rent may affect your credit score.

In the past, paying rent on time didn’t really do much for credit scores; today, it might. According to Experian RentBureau director Emily Christiansen, breaking your lease and failing to pay rent for the agreed to number of months could come back to bite you. Why? When property managers turn the matter over to a collection agency, the unpaid debt may be reported to a credit reporting company. This ultimately means your credit score will likely drop, which can impact your ability to make certain purchases in the future.

Can paying rent on time actually boost your credit score? It depends. If your property manager or landlord is signed up with a service that works with Experian RentBureau, it just may. In 2010, Experian began recording positive rental histories of tenants through Experian RentBureau. If you’re not familiar with Experian, it is one of three of the most important credit bureaus in the U.S. If your landlord or property manager is not signed up with a rental service which reports to Experian, paying rent on time will not likely improve your credit score. However, it’s still important to avoid breaking your lease! When an unpaid debt is reported, it will remain on your credit history for seven years.

Is there a way to improve your credit score on your own? Possibly. If your landlord does not currently report rent payments through a service who works with Experian, you can sign up through rent payment services such as ClearNow or WilliamPaid, two services Experian RentBureau partners with. Once you’re signed up, simply opt-in so that your rent payments will be reported. Pay on time, don’t break your lease, and watch your credit score improve!

Working on your credit score now could pave the way to purchasing your dream home in the future. When buying a Flower Mound home, what’s on your credit report does matter; a bad credit score could prevent you from getting the financing you need to purchase a home.

At Team Nelson, we do all we can to help couples and families purchase the home of their dreams. Contact our Flower Mound real estate agents today for more tips on buying a home!

What People Are Saying

We love using Team Nelson to buy and sell homes! The entire team is incredibly knowledgeable, helpful, and responsive. Tara has been are go to for anything we need to know about local market and market trends. They will schedule a meeting in person at your home and give you honest expectations of the sell of your home. They meet and often exceed the expectations they set for their customers.
Demi Devine Avatar
Demi Devine
12/30/2022
Highly recommend working with Bill & Andra and their team at Your Home Free (Emma & Kelly) for your home buying & selling needs. We thoroughly interviewed 10 other brokers/realtors before deciding to work with their team and never regretted it. They are extremely professional, passionate, responsive, and experienced in the Dallas market. We greatly appreciate them & their time. You will be in goods hands with listing, selling, or buying your home!
zuser20150115144057455 Avatar
zuser20150115144057455
11/17/2022
This is the third house that Team Nelson has sold for us. With sales of homes dropping throughout the Metroplex Team Nelson had us an offer in less than 10 days which we took. The three other homes for sale within a three block area are still on the market after ours has closed.
jtrickel4 Avatar
jtrickel4
11/17/2022