Tag Archives: credit reports

Real Estate

Good Rental History Can Help Borrowers


First-time home buyers planning to purchase a house later this year may have a better chance of qualifying for a mortgage if they have had a history of paying their rent on time.

  • Last year, credit-reporting agency Experian added a section to millions of credit reports showing on-time rent payments and raised the credit scores of many people.  The company said that this year it would add in negative marks, including mentions of bounced checks or of tenants’ leaving before a lease was up.
  • Incorporating rental payments into credit scores could affect millions of people who have not established credit histories through credit cards, student loan repayments, and other credit sources.
  • Almost half of consumers considered “high-risk” experienced an increase of 100 points or more after their positive rental history was added, according to Experian’s rent bureau.  Those with average or higher scores did not experience major movement.
  • Although it is still too early to show the effects of the new credit report, which began in December, the changes are intended to allow lenders and consumers to have greater transparency, according to Corelogic.
  • People who have lost their homes to foreclosure and are now leasing may be able to rebuild their credit histories by being responsible renters.
  • However, consumer groups and advocates are skeptical, noting that reports are sometimes riddled with mistakes and some landlord-tenant disputes may be difficult to capture in a credit report.  Rent may not have been paid, for example, because the furnace was left unrepaired for months.

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Call or email
John J. O’Dell Realtor® GRI
Real Estate Broker
(530) 263-1091
Email jodell@nevadacounty.com

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Real Estate

Hidden Medical Debt Trips up Homeowners


Well-qualified borrowers with good loan-to-value ratios and steady employment are increasingly finding it difficult to refinance because of medical billing mistakes impacting their credit reports and scores, according to mortgage bankers and real estate agents.

  • Nearly 14 million Americans have errors on their credit report due to medical collections, according to the Commonwealth Fund, a non-profit organization focused on health care research.
  • Unnoticed credit errors, such as small, unpaid balances on medical bills, can make refinancing a mortgage difficult or, in some instances, impossible.  If approved for a refinance, unpaid bills can result in the borrower paying higher closing costs.
  • It is critical that consumers routinely review their credit reports to ensure the reports are accurate and up-to-date.  Consumers are entitled to one free credit report annually from https://www.annualcreditreport.com/cra/index.jsp.  The report does not include the credit score; however, the score can be obtained for a small fee.
  • The U.S. House of Representatives passed a bill this fall that could provide relief for homeowners with medical-debt troubles.  The Medical Debt Relief Act, which is currently in the Senate, would remove settled medical debt from credit reports after 45 days, instead of the customary seven years.

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For all  your real estate needs
Call John J. O’Dell
Real Estate Broker
(530) 263-1091
DRE# 00669941