Millions of American renters could become mortgage-eligible as VantageScore and Esusu demonstrate that adding on-time rental payments to credit reports boosts credit scores and predictive accuracy.
A new white paper found that including positive rental data improved VantageScore 4.0’s predictive performance by 11% and could help nearly four million renters achieve a score of 620 or higher, meeting mortgage eligibility standards.
Analyzing data from more than 600,000 renters, the report showed that including verified, consistent rent payments significantly increased credit scores and enhanced lenders’ ability to assess credit risk. Integrating positive rental data improved the predictive strength of the VantageScore 4.0 model by 11%.
With an 11% improvement, nearly four million renters would become eligible for a conforming loan backed by Fannie Mae and Freddie Mac.
But just 13% of renters today have their rent payments reflected in their scores due to the fact that landlords typically only report missed or late payments. By integrating both positive and negative rental data, VantageScore and Esusu aim to make credit reporting more comprehensive, helping transform rental payment history into a recognized path toward homeownership.
The study also showed that renters who achieve a 620 score after adding their rent history demonstrate repayment behavior comparable to borrowers with traditional credit files, proving that on-time rent payments do indicate creditworthiness.
VantageScore has launched a pilot program inviting lenders to adopt this new approach, potentially expanding safe mortgage lending opportunities while maintaining sound underwriting standards.
VantageScore is the first tri-bureau credit score model to formally include rent payment data, and in July 2025, it was approved by the FHFA for use in Fannie Mae and Freddie Mac–backed loans.
States like California, Colorado, and New York have already implemented rent reporting initiatives, and others, such as Georgia, Missouri, and Washington, are considering similar legislation.
Federal lawmakers are also advancing bipartisan efforts to expand the use of alternative data in credit scoring.
Experts largely agree that using rental data in credit scoring is a net positive. But some warn that it can make it extra risky to miss a payment.
“Those late payments show up on [your credit report], and it’s like the kiss of death for landlords,” Chi Chi Wu, a senior attorney at the National Consumer Law Center, told CNBC. “What you risk is hampering struggling tenants or even causing them to be homeless.”
