More People will Qualify!

1. The Announcement

Big news in the world of credit: VantageScore 4.0 now factors in rent and utility payments when calculating your credit score. For millions of Americans—especially renters—this could open new doors to homeownership and better financing options.

This change is active now and rolling out across credit reporting platforms that support the VantageScore model.

2. What Is VantageScore 4.0 and What’s New?

VantageScore is a credit scoring model developed by the three major credit bureaus—Experian, Equifax, and TransUnion. It’s used by many lenders as an alternative to the traditional FICO score.

What makes VantageScore 4.0 different?

  • It includes your history of rent payments
  • It counts utility and phone bills (where reported)
  • It uses trended credit data (how you manage balances over time, not just your current snapshot)
  • It ignores paid collections and places less weight on medical debt

3. Why This Is a Game Changer

For many people—especially renters and those without credit cards or loans—traditional credit models haven’t told the whole story. Rent and utility payments are often your most consistent bills, but until now, they didn’t help your credit score.

With VantageScore 4.0:

  • A renter with no credit cards or loans can now build credit
  • A young adult just starting out can show creditworthiness based on everyday bills
  • A consistent utility payment record can offset limited credit history

This is especially important for those working to improve their score to qualify for a mortgage. It creates a new path forward without needing to go into debt just to prove financial responsibility.

4. How to Make It Work for You

To take advantage of this change, your rent and utility payments need to be reported to the credit bureaus. Here’s how to do it:

Rent Reporting Services:

  • RentTrack
  • Rental Kharma
  • Esusu
  • LevelCredit
  • ClearNow

Utility Bill Reporting:

  • Experian Boost (for utilities, phone, and streaming services)
  • eCredable Lift (links utility accounts directly)

Important Note:
Not all landlords report rent payments automatically. Using a third-party reporting service ensures your payments show up on your credit report. Do your research to mix and match to get the best combination for you.

Final Thought

If you’ve been paying your rent and bills on time, it’s time you got credit for it—literally. At MortgageSimplified.net, we can help you understand your credit profile and develop a financing strategy that works for you.

Let’s talk about your options—especially now that your rent and utilities may be working in your favor. solutions@mortgagesimplified.net

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