PHILADELPHIA (WPVI) — With mortgage rates continuing to rise and new home construction slowing, many prospective buyers are finding homeownership increasingly out of reach.<\/p>\n
But financial experts say renters have new options to strengthen their credit profiles by using their monthly housing payments.<\/p>\n
Rents typically do not appear on a credit report, even though they are often a household’s largest expense.<\/p>\n
And with mortgage rates now above 7 percent-their highest levels since early 2025-more people are renting longer.<\/p>\n
Zillow’s latest analysis released this week shows Philadelphia faces a shortage of 80,675 homes.<\/p>\n
However, there are several tools that allow renters to build credit history using on-time rent payments without taking on new debt.<\/p>\n
One option is Zillow Payments<\/a>, which reports rent payments to the three major credit bureaus.<\/p>\n Any landlord can offer the program through Zillow Rental Manager, and tenants can opt in.<\/p>\n The company says the service is free for both landlords and renters.<\/p>\n “If you are a renter, take advantage of this,” said Mischa Fisher, who is the Chief Economist at Zillow. “So that you get all of the credit that you have been earning.”<\/p>\n About one-third of mortgage applications are denied due to a lack of credit history, according to Zillow.<\/p>\n The company also notes that only one-time monthly rent payments are reported, meaning late or missed payments will not hurt a renter’s credit score.<\/p>\n Fannie Mae <\/a>allows lenders, with a borrower’s permission, to use 12 months of positive rent payment history to help qualify for a mortgage.<\/p>\n