HOA and Condominium Fees Can Now Affect Your Credit Score
In fact, your credit score is not a single number . There are different agencies that use different ratios to calculate different ratings. Equifax is one such agency and they are adding a new factor to their metric: Homeowners Association (HOA) fees.
We previously announced that FICO plans to use a new estimate to account for your bill payments . It is based on the same idea: the timely payment of bills, including the fees of the HOA, usually demonstrates financial responsibility, which, in essence, is measured by the credit rating. The data will be provided by the Sperlonga data aggregator. In a press release, Equifax’s senior vice president said:
Equifax is committed to providing consumers with additional tools to build their credit histories. The introduction of new data sources beyond those traditionally found in credit files can provide additional insight into consumer financial behavior and help ensure increased access to credit.
In other words, paying your HOA dues on time can improve your credit rating (at least your Equifax rating). On the other hand, if you are late, it can hurt you. To find out more about this update, see the full press release at the link below.