{"id":6730,"date":"2026-10-16T10:30:00","date_gmt":"2026-10-16T10:30:00","guid":{"rendered":"https:\/\/sandpointrealtyidaho.com\/blog\/2026\/10\/16\/the-biggest-credit-hurdle-for-renters-who-want-to-buy\/"},"modified":"2026-10-16T10:30:00","modified_gmt":"2026-10-16T10:30:00","slug":"the-biggest-credit-hurdle-for-renters-who-want-to-buy","status":"publish","type":"post","link":"https:\/\/sandpointrealtyidaho.com\/blog\/2026\/10\/16\/the-biggest-credit-hurdle-for-renters-who-want-to-buy\/","title":{"rendered":"The Biggest Credit Hurdle for Renters Who Want To Buy"},"content":{"rendered":"\n
\"The\n

What\u2019s the biggest payment you make every month? If you\u2019re a renter<\/a>, it\u2019s probably your rent.\u00a0<\/p>\n

But did you know that you can pay your rent on time, every time, for years, and it may never show up in your credit history? It\u2019s pretty frustrating, especially if you\u2019d like to buy a home someday and you\u2019re trying to build your credit.<\/p>\n

The good thing is that\u2019s changing right now. Here\u2019s what you need to know and why it could open a door you thought was closed.<\/p>\n

The Problem for Would-Be Buyers<\/strong><\/h4>\n

You\u2019re not the only one frustrated. According to Zillow<\/em>, nearly a third of applicants (32.88%) get denied a mortgage due to insufficient credit history \u2013 not missed payments or too much debt. Just not enough credit history for a lender to say \u201cyes.\u201d<\/p>\n

It\u2019s the most common hurdle would-be buyers have. As Zillow<\/em> explains:<\/p>\n

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\u201cNearly <\/em>one-third of mortgage applicants are denied a loan because of insufficient credit history<\/em><\/strong>, making it the <\/em>most common reason for a denial<\/em><\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

\"a<\/p>\n

But there\u2019s finally a way in now that how credit gets measured is changing.<\/p>\n

The Good News: Credit Is Getting Broader<\/strong><\/h4>\n

As Michael Sherman, General Manager and Senior VP at Zillow Rentals,<\/em> explains:<\/p>\n

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\u201cAffordability is the headline in housing right now, and access to financing is a very important part of the story. <\/em>Credit history is a barrier standing in the way of too many potential buyers. Rent reporting is a direct way to address that<\/em><\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

Here\u2019s what Sherman is talking about. <\/em>New credit models are emerging that take on-time rent and some utility payments into consideration to help renters get credit for the bills they already pay.<\/p>\n

VantageScore<\/em> is one company with a new credit model that has been approved for use by the Federal Housing Finance Agency (<\/em>FHFA<\/a>). And that roll out could have a big impact on renters like you.<\/p>\n

A recent study<\/a> by VantageScore<\/em> found that nearly 4 million U.S. renters could finally become eligible for a mortgage if their on-time rent payments were counted as part of their credit history<\/strong>. Now, this isn\u2019t a guarantee that it will suddenly count for every would-be buyer, but it does crack open the door.<\/p>\n

Here\u2019s the catch though, you still have to walk through it.<\/p>\n

Counting Rental Payment History Is Not Automatic<\/strong><\/h4>\n

There are more options available to build credit, but you have to be proactive. Your rent won\u2019t necessarily count unless you make sure it does. And the sooner you take credit for your payments, the better.<\/p>\n

Here\u2019s how to get started based on a few tips from Experian<\/em><\/a>, the Consumer Financial Protection Bureau<\/em> (CFPB), and FICO<\/a>:<\/p>\n