GREAT NEWS! Rent-to-Own Payment History Now Included in FICO Score!

Here is some great news for rent-to-own home buyers or anyone contemplating a lease purchase home. Now, with changes to the way one of the "big three" credit reporting agencies records payments, a lease option is not only a good program, it will help improve your credit!

According to the Association of Progressive Rental Organizations, come September, Fair Isaac Corp., will add rent-to-own payment histories as part of its credit scoring formula. This is really big news for rent-to-own home buyers. Pay on time and you could qualify for an even better mortgage rate on your rent-to-own house.

One of the downfalls of a "Lease with Option to Purchase" has been qualifying for a good rate. Generally people that are in a rent to own program are doing so because of bad credit. Now, after a year or two of on-time house payments, their credit score will improve.

Here is part of the article:

Rent-to-own payment histories to be figured in FICO scoring
By APRO staff
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[05-17-2007]

ne of the nation’s most popular credit scoring companies, Fair Isaac Corp., will add rent-to-own payment histories as part of its credit scoring formula beginning in September. FICO has been developing credit scoring systems since the late 1950s and helps rank the credit standings of approximate of 165 million Americans. The company’s new system is designed to improve the accuracy of the credit scoring system to give banks more confidence in lending...