There’s big news in the world of credit scoring, and it could open the door for more first-time homebuyers. The new VantageScore 4.0 model is rolling out, and for the first time, all three major credit bureaus will now factor in positive rental payment history when calculating credit scores.
Why does this matter?
Traditionally, many renters have paid on time for years, yet received zero credit benefit from it. To build credit, they often had to take on debt—like credit cards or loans—just to prove financial responsibility. Now, timely rent payments will finally count.
This shift is a major win for renters, especially those preparing to purchase their first home. By improving credit scores without needing to take on additional debt, buyers may find it easier to qualify for a mortgage and secure better interest rates.
Preparing For Your First Home Purchase
This update could help more renters transition into homeowners and remove one of the biggest barriers to building credit and achieving homeownership. Truly a game changer!
Curious how this change could impact your home buying timeline? Let’s chat!