A great platform in the industry, FrontLobby helps students build promising credit scores by making timely rent payments.
— FrontLobby co-founder Zac Killam
WEST VANCOUVER, CANADA, Oct. 21, 2022 /EINPresswire.com/ — ~ Using FrontLobby, students can build credit and improve their financial well-being simply by paying rent and sharing it with Equifax.
~ Improving financial equality for tenants, FrontLobby allows students to build credit and unlock credit-related rewards sooner.
October 2022: A student’s housing cost is often their biggest expense each month. In 2021, the median monthly rent paid by students was $1,250, about 25% higher than the median monthly rent paid by the general population.
Despite this imbalance, very few students get the credit they deserve for making timely payments each month. FrontLobby wants to correct this inequality by raising lease payments to the same level as consumer loans and credit card payments. FrontLobby allows rents to be reported to credit bureaus by tenants and housing providers. When rent is declared, a new business line is added to the tenant’s credit file, demonstrating a positive payment history over time. Both are factors that contribute to increasing a credit score.
A recent statement from Equifax Canada suggests that those with little or no credit could be greatly affected by sharing their rent payments with the credit bureaus. According to the findings, 48% of tenants who reported through FrontLobby are currently assessable based solely on rental data reported in Equifax. This means that nearly half of renters with FrontLobby only have rental information and no other credit accounts listed on their Equifax credit report. If these people stop reporting through FrontLobby, they could become invisible to credit over time, unless additional credit is obtained and reported to Equifax.
A good credit score is important for anyone who wants to borrow money, whether it’s for a car, a loan or even a student line of credit. But it can be difficult to establish credit when you’re starting from scratch. Students who report rent payments using FrontLobby can boost their credit scores by paying their rent on time and ultimately improve their future loan terms.
The benefits of rent reporting don’t stop at improving borrowing. Many housing providers check a tenant’s credit before selecting a new tenant. When tenants can demonstrate a positive payment history, they are better positioned to secure the housing opportunity of their choice.
FrontLobby Co-Founder Zac Killam says, “The individual and broader economic benefits of rent reporting are monumental, and FrontLobby is proud to pioneer this solution for housing providers and tenants to help ensure financial well-being, inclusion and equal opportunity for all stakeholders in the rental community.
Saving on loans will help students achieve financial independence faster and possibly achieve their future homeownership goals. FrontLobby provides a solid foundation with the ability for students to improve their credit and close the financial gap for tenants.
About Front Lobby
FrontLobby’s mission is to empower the businesses and lives of housing providers while enriching the lives of tenants. FrontLobby provides the means and tools for housing providers to attract excellent tenants, reduce the frequency and impact of defaults, and improve operational efficiency while providing tenants – seeking to establish or rebuild their credit – a liberating way to improve their credit and access financial benefits. for themselves and their loved ones.
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