Experian will include rent payments in the factors that it uses to determine credit scores.
Not every renter will benefit. The data comes from information provided by property managers that run larger complexes. There will be amount 8 million payments, but that's still only a portion of the 37 million rental units in the United States.
It is a gain for renters, but it is a threat to MicroBilt's Pay Rent Build Credit model offered on some
prepaid debit cards. The Rush Card offers "its RushPath to Credit and NetSpend's Account Now card has Credit Builder. In PRBC, landlords could send reports on the payment histories of tenants holding those cards. Recently, Microbilt said that it would offer PRBC FICO Expansion Score, which
passes its data on to the FICO database.
Either process is contingent upon the participation of landlords, but Experian's model seems much more likely to bring scale to the idea.