AOL: Rent payments could boost credit scores in a big way

AOL, July 19, 2021, Rent payments could boost credit scores in a big way

Millions of renters could get a big boost to their credit score if landlords reported their on-time rent payments, according to a new TransUnion analysis, which could help lower their borrowing costs.

“Home mortgage lenders don’t use Vantage score, or even a newer version of FICO in their home mortgage lending operations,” said Jesse Van Tol, CEO of the National Community Reinvestment Coalition, a big disadvantage for renters who want to make that leap to homeownership.

 

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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