Monday Market Update: New Credit Model Accounts For On-Time Rental Payments

Nearly 7.7 million Americans could see a credit boost!

Have you ever felt ‘credit invisible’? Have you heard of a situation where a renter could not qualify for a mortgage because their on-time rent and utility payments were not factored into their FICO score? As of April 22, 2026 – that is about to change!

Last month, Fannie Mae and Freddie Mac said they will now accept mortgages underwritten with the VantageScore credit model. As explained by Realtor.com®, “VantageScore is a scoring model developed by the three major credit bureaus, Equifax, Experian, and TransUnion. Its ‘trended data’ takes into account rental and utility payment history reported to the bureaus.”

This is considered a massive nationwide modernization of credit reporting; in 2025, only 13% of renters benefitted from positive rental history when applying for a mortgage via previous credit models. To date, only California, Colorado and New York have adopted programs for rent reporting, while 9 other states had considered legislation.

The now approved VantageScore credit model is expected to boost the credit of 7.7 million Americans – by an estimated 67-100 points. Realtor.com® Senior Economist Jake Krimmel states that this credit change “could make a difference for a small but growing share of borrowers: freelancers, self-employed households, gig workers, or young people and immigrants with good, reliable cash flow but a thin credit file. “They are probably qualified as a whole, but not on paper under the current rigid, outdated system.”

Learn more from Realtor.com® and the New York Post.

Cheers to positive changes for home ownership!

Bobbi

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/