A new program will allow eligible renters report monthly rent payments to credit reports
The Delaware State Housing Authority launches a statewide rent reporting pilot program to help some renters build their credit score.
The pilot is funded by the American Rescue Plan Act, and will allow over 400 low-income renters to boost their credit scores by reporting their monthly rent payments to their credit reports.
Eligible renters must have a housing voucher from or live in a public housing unit operated by one of the state’s five public housing agencies, or have a household income at or below 250% of the federal poverty level.
There are also income limits. For a family of four, it’s $69,375, for a two-person household it’s $45,775, and for a one-person household it’s $33,975.
Laurie Jacobs is Public Relations Director for the Delaware State Housing Authority.
"So the pilot will last for a year, so 12 months of credit reporting, and it will also include - which is great - an option to report 24 months of past rent payments as well. So forward 12 months and then 24 past months as well,” said Jacobs. “In order to enroll in the program you have to visit one of our program partners which is NeighborGood partners formerly known as NCALL."
You can visit NeighborGood Partners website to sign up for a qualification interview.
Jacobs says this is a tool renters can use to help build toward buying a house.
"So it's incredibly important in just creating a great credit history, but it can also be a stepping stone into home ownership as well. Your credit score is a significant part of being able to get a mortgage loan, or even being able to qualify for larger amounts of mortgage loan," said Jacobs.
During the pilot program, tenants can also access monthly credit scores, ID theft insurance, and financial counseling.