If tomorrow all 3 credit bureaus merged into 1 company and you had just 1 credit score, the home buying and loan underwriting process would not change.
The 3 Bureau Misconception
Most people have the misconception that data needs to be reported to all 3 bureaus. The reality is that is not the case. When mortgage lenders pull your credit reports they combine all the data into one report. When they see duplicate information, they simply delete the duplicates and continue on with the underwriting process.
For example, all home loans in the US are processed through a government program called Fannie/Freddie. When the mortgage officer pulls your credit file they pull from all 3 bureaus (TransUnion, Equifax & Experian). If you do not have a score on all 3, then they will use just the ones you do have data with.
When they pull your report they upload it into the underwriting program and ALL duplicate data is deleted and disregarded. So if you have your rent on one bureau, that is all you need to keep you moving towards success.
For Example:
If you have a car loan for $30,000 reporting on all 3 credit reports, the underwriting program does not think you own 3 cars and have 3 accounts with $90,000 in debt on each. It recognizes they are the same and simply deletes the duplicates.
We currently report to TransUnion.
TransUnion is the only credit bureau that accepts past rental payment history. TransUnion is also the only credit bureau that has adopted a process to report your rent without you having to change the way you pay your rent.
At Rental Kharma, we believe that you should be getting credit for your past rent payments as that has a significant impact on your credit in a quick manner.
What about Equifax?
Equifax is slowly starting to accept rental payment data. However at this time the reporting option for renters at Equifax is so overburdened with bureaucratic hurdles that it is not realistic your rent can be reported to them. We estimate that 1-2% of renters would be able to successfully complete the process and it would only happen if you rent from a large property management company that is willing to sign a contract for reporting with Equifax.
What about Experian?
While Experian does not accept past rental payment history. Also, they only accept ongoing rental payments if you change the way you pay your rent and pay via a 3rd party system.
You should read our reviews, as about 70% of our members use Rental Kharma to purchase a home. https://www.facebook.com/pg/rentalkharma/reviews
Remember, we do have a Satisfaction Guarantee policy. You can also call us at 720-307-1466 Monday through Friday, 8am-6pm MST.
