Increase Your Credit Score by Providing This App With a Timely Rent Report
It takes time to build up a loan from scratch or to try to recover from multiple setbacks that caused your account to drop. Making payments on your loans and credit cards on time is a good way to do this, but your credit score doesn’t account for one big bill you probably pay every month: your rent.
Pinch is a service that reports your timely rental payments to the credit bureaus. Assuming rent is something you always pay on time, which can help you improve your credit score over time.
The principle of operation is simple: when you download the application, you will be prompted to download a copy of the lease agreement and connect your bank account.
When you write to the landlord that the check is every month, you photograph it using the app. When the check you photographed clears your bank account, Pinch reports it as a paid account (similar to an installment loan) to credit bureaus such as Experian, TransUnion and Equifax. The service is free and does not require you to even inform your landlord, let alone have him or her participate in the verification process.
Provided you are on the same lease, you can also get a 24 month service report of past lease payments in Transunion and Equifax at check-in, instantly creating an extensive history of timely payments.
According to Pinch, 75% of people using his services see an increase in credit. I guess if you already have a great reputation it won’t help. However, if your credit is sagging, this may be exactly what you need to bump it up a bit.
And if you decide it’s too hassle, you can also cancel or pause the service using the in-app chat feature.
Late rent is something that can definitely affect your credit rating, so it’s a good idea to have a way to pay your rent on time, potentially positively.