Build Your Credit with Rent

Did you know that you can build your credit with your rent payments?

Have you ever heard of Rental Kharma?

Well Rental Kharma allows you to use your good paying rental history as a positive trade line on your credit report.  Currently Rental Kharma reports to TransUnion credit bureau.

How it Works

Once you pay the enrollment fee usually $40 the company contacts your landlord and verifies your payment history and then reports monthly.  Rental Kharma allows you got go back and report up to 2 years of rental payment history.  This is great because the older your accounts are the more positive impact it will have on your overall credit score.  You continue to pay rent to your landlord and Rental Kharma keeps reporting monthly for a nominal fee of $2.95 per month.

Rental Kharma may be a good fit for you if you are just starting out with a limited or no credit history.  Having a great track record of on time rent payments is definitely an positive thing when you are applying for a home loan.  Rental Kharma is also beneficial for business owners who are building their credit as well.

In addition, Rental Kharma can be used for residential and commercial leases.  if you are renting an office space your on time rental payments can also be reported by a positive trade line under the business owner's personal credit file.

If you want more information about Rental Kharma visit www.770creditscore.com and hit the Rental Kharma tab.

 The Value of Good Credit

Having a great credit score will save you thousands, even tens of thousands of dollars, on your biggest financial purchases. 

Buying a home will probably the largest purchase you will ever make in your life. Your credit score will determine not only if you qualify for a home mortgage but also how much you pay in interest. Think about this. If you had a credit score of 770 vs. a score of 630, you could save over $150 a month on your mortgage payment because your interest rate will be lower due to the higher credit score. Over 30 years that $150 a month equals a total savings of over $71,000.

When you purchase an automobile, your credit score determines how much you pay in interest for that auto loan and can significantly impact how much money you pay over the life of that auto loan. An applicant with a 610 credit score will qualify for the loan, however it will be at a much higher interest rate than an individual with a 710 credit score. Over the course of the loan that will equal thousands of dollars more in interest payments for the exact same car.

Insurance companies use your credit score as part of the process of understanding your risk to them as a insurance provider. The higher your credit score the lower your insurance rate. Insurance companies believe that a high credit score means you are an less risky individual. As a result your insurance premium goes down and you save money every month.