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New Study from HUD and PERC Aligns with Recent TransUnion Findings That Demonstrate Rent Reporting Can Benefit Renters

A new joint study from the U.S. Department of Housing and Urban Development (HUD) and the Policy and Economic Research Council (PERC) found that if the rent payments of HUD-assisted consumers are reported to credit reporting agencies, many of these households would cease being ‘credit invisible.’ These findings align with recent TransUnion (NYSE: TRU) research which demonstrated that 100% of residents who were considered unscorable at the time of application became scorable following a year of rent payment reporting.

That same TransUnion analysis also found that subprime consumers who make timely rental payments may see their credit score increase by as much as 26 points over the same time period.

“The joint study from HUD and PERC has the potential to influence the lives of millions of American renters as the findings clearly point to the benefits of rent payment reporting. The study comes at a time when what was once common credit data may not be as prevalent in this increasingly technological and mobile age,” said Maitri Johnson, vice president and head of TransUnion’s rental screening solutions business. “Rent payment reporting data promotes a more comprehensive way of viewing consumers’ full credit picture - ultimately stimulating financial inclusion and expanding economic opportunities.”

The joint HUD and PERC study, “Impacts of Credit Report Public Housing Rental Data,” examined how reporting rent payments made by thousands of consumers in HUD-assisted households to nationwide consumer reporting agencies would impact the credit ratings of these families. The study analyzed credit scores provided by TransUnion and Experian of more than 9,000 HUD-assisted households in Cook County, Illinois; Louisville, Kentucky; and Seattle using credit risk models from VantageScore®  and FICO.

Reporting rental payment data resulted in a significant increase in the number of HUD-assisted tenants with credit scores above 620. In addition, the inclusion of rental payment data nearly eliminated credit invisibility among HUD-assisted tenants. In one risk model, the rate of ‘unscorable’ tenants fell from 49% to 7%; in another risk model, the share of tenants with little or no credit history fell from 11% to 0%.

“The inclusion of data from rent payment reporting in a consumer’s credit report has the potential to help them increase their credit scores, and ultimately, help these consumers qualify for more credit products, gain access to higher credit limits or obtain lower interest rates on current or future loans. Renters have also expressed that they would be more likely to make on-time payments if this information was reported. That’s a win-win proposition for both renters and property managers,” concluded Johnson.

For more information on TransUnion’s rent payment reporting solution, please visit

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