Paying rent is typically one of the largest monthly expenses for many, yet it hasn’t traditionally contributed to building a credit score. However, that’s changing with new opportunities that allow renters to improve their creditworthiness simply by making timely rent payments. Various services now enable tenants to report their rent payments to major credit bureaus, which can significantly impact their credit scores. This innovative approach offers renters a way to build or improve their credit profile without taking on debt, helping them access better financial opportunities in the future. Here’s how you can benefit from this new option.
RentenPe is launching the first Rent Credit Score and Residence Card (R-Card) to reshape India’s rental market. This innovation addresses a significant gap in the financial ecosystem by recognizing rent payments as a valuable indicator of financial responsibility, akin to loan EMIs or credit card payments.
Young professionals across India, especially those moving to urban centres, spend up to 30% of their income on rent. Yet, these regular payments often go unnoticed by traditional financial assessments. RentenPe’s Rent Credit Score aims to change that by leveraging tenants’ rental history to create a credit profile. This can unlock benefits such as improved rental agreements, rent-related loans, and even pre-approved home loans, helping tenants move one step closer to homeownership.
Sarika Shetty, Co-Founder & CEO of RentenPe, explains, “We believe that rent payments should be treated with the same financial importance as other obligations. The Rent Credit Score empowers tenants, giving them a tool that acknowledges their financial commitment.” RentenPe’s R-Card complements the Rent Credit Score, serving as a digital rental identity. This “rental passport” streamlines the process for tenants and landlords alike, providing verified profiles, quicker rental approvals, and potential savings on rent.