Property owners can help residents establish and improve their credit scores while paying rent on a flexible schedule
BRUNSWICK, Maine, June 29, 2022--(BUSINESS WIRE)--Circa, an innovative payments technology company, has added positive credit reporting through TransUnion to its rent payment solution. The addition of credit reporting to Circa’s existing offering of flexible payments and integrated communications enables residents to build positive credit history from on-time rent payments.
"Credit scores, while a relatively new tool, have become critical in modern personal finance. They determine whether you can buy a home, rent a car, and sometimes even get a job. Scores are directly tied to payment activity on credit cards and mortgages, but rent and utilities have not generally been included. Now, for the first time, residents can improve their credit scores by paying rent through Circa, even when using a flexible payment schedule. Positive credit reporting is another powerful path toward financial health that property owners can provide to their residents," said Leslie Hyman, co-founder and CEO of Circa.
To implement credit reporting for residents, property owners can opt in and undergo a standard TransUnion credentialing process through Circa. After they are credentialed, credit reporting for residents can begin immediately. When rent payments are received on time - using a flexible payment schedule or not - Circa supplies positive credit reporting to TransUnion on behalf of property owners. Circa only reports positive payment activity, and there is no need for the resident to do anything.
Payment history makes up about 40% of an individual’s credit score while length of payment history makes up about 21% of the score. Good credit can help people secure better rates on insurance, better interest rates on car loans and credit cards, a future mortgage, and many other benefits that are key to upward mobility.
"Having a low credit score - or having no credit at all - can derail someone’s personal and professional growth. Simply put, bad credit makes life more expensive - you can expect higher interest rates, more expensive insurance premiums, and generally worse loan terms than someone with good credit. Rent is a household’s largest single expense and the reporting of on-time payments could have a transformative impact on a person and their family," said Bubba Grimsley, CEO of Liberty Rent, a company that’s main focus is securing rental housing for households with low credit scores.
Circa reinvented rent with a technology platform that brings flexibility, choice, and mutual respect to the residential rental payment process. Visit www.wearecirca.com.
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