LOS ANGELES, Oct. 3, 2023 /PRNewswire/ -- RentSpree, the industry's premier end-to-end rental management software provider, is excited to announce the launch of Credit Builder, a rent reporting feature designed to enhance renters' financial health and facilitate their journey toward homeownership.
Through its Credit Builder feature, RentSpree facilitates secure online rent payments that can automatically be reported to TransUnion.
"No pun intended, but let's give credit where credit is due," said Michael Lucarelli, CEO and Co-Founder of RentSpree. "Building a credit history through rent payments can significantly impact loan approvals, especially for those with limited credit history. RentSpree aims to facilitate this process and empower renters to achieve their financial goals, whether it's securing a loan, purchasing a vehicle, or buying their dream home."
Despite being one of the largest monthly expenses for renters, usually accounting for between 30 percent and 40 percent of their income, rent payments traditionally have not contributed to their credit history. Unlike homeowners, renters do not build credit with each timely rent payment.
Recognizing the significance of rent payments in the financial success of individuals, Fannie Mae and Freddie Mac recently began to consider this monthly financial outlay as part of borrowers' credit histories. As consumers are unable to directly report on-time rent payments, RentSpree's Credit Builder feature bridges this gap.
"Credit Builder is a powerful tool that can truly help renters and landlords alike," said Lucarelli. "Research shows that when payments are reported to credit bureaus, seven out of 10 renters are more likely to pay on time. So this feature is going to benefit those who are already punctual while encouraging others to develop greater consistency. It's a win-win."
He added, "All of us who are in the business of helping renters – whether it is the landlords who provide the space, the agents who work with renters or the organizations that in turn support agents such as MLSs — can ultimately play an important part in helping renters transform rent payment obligations into stepping stones toward a better credit score and a more financially sound life."
Los Angeles-based RentSpree is a provider of award-winning rental software that helps easily connect real estate agents, landlords, and renters to simplify the entire rental process. The platform is known across all 50 states for its seamless and secure interface and suite of rental tools, including tenant screening, rent payments, marketing and renter management. To date, RentSpree has partnered with more than 250 of the most influential MLSs, real estate associations and brokerages to serve over one million users in the U.S. RentSpree was ranked on Inc. 5000's fastest-growing private companies in 2022 and 2023. Visit http://www.rentspree.com for more information.