The CreditBoost feature helps tenants build credit by automatically reporting on time rent payments to TransUnion. The following covers frequently asked questions and also discusses when late payments can be reported by landlords.
- What is CreditBoost?
- Can tenants opt-in and opt-out of CreditBoost as desired?
- What happens when a payment is late?
- How exactly does each on-time payment or late payments change a credit score?
- Can a late payment be reported on just one roommate?
- What happens if a landlord reports rent late when it was actually paid on time?
- What if tenants have existing late payments when their landlord activates CreditBoost?
- Will any previous payments be reported with CreditBoost?
- Can payment or non-payment on charges other than rent be reported?
Questions and Answers:
1. What is CreditBoost?
The CreditBoost is a feature that allows tenants to improve their credit scores through the payments they are already making. Because every on-time payment is automatically reported to the credit bureau: TransUnion, all that tenants need to do is opt-in pay rent on time in order to see their credit score improve.
2. Can tenants opt-in and opt-out of CreditBoost as desired?
Tenants do not have to wait for their landlord to opt-into the program; however, once activated by the landlord, tenants cannot opt-out. Landlords can activate CreditBoost for their tenants at any time.
The setting can be changed by tenants from their Payments tab by toggling CreditBoost on or off (image below). Tenants will not have an option to disable the feature if their landlord has already activated it.
3. What happens when a payment is late?
TransUnion does not consider payments late until they are 30 days or more past due. These late payments will never be automatically reported by Avail. Unless a landlord takes special action, late payments will not negatively impact credit scores.
Landlords may submit delinquent rent notifications to TransUnion through Avail after a payment is 30 days delinquent. It is vital that landlords be absolutely sure that payments were not received before reporting as this action may lower credit scores of the tenant and they have the ability to dispute late payments that have been reported.
In order to report a late payment, the landlord must navigate to the specific charge that is overdue and click "Report." Once they click "Report," a pop up and require them to reconfirm by clicking the purple "Yes, Report Now" button to the bottom left of the screen. This will send the late payment report to TransUnion and can negatively impact the tenants credit. The tenant will also be notified of this reported late payment.
4. How exactly does each on-time payment or late payments change a credit score?
A credit score is based on many factors such as credit usage, payment history, age of accounts, inquiries and derogatory marks - these are different for each individual which makes the percentage of change in your score almost impossible to predict. It varies based on each individual and their current credit. If you have little to no credit, it will certainly help build your credit lines positively with each on-time payment.
5. Can a late payment be reported to TransUnion on just one roommate?
No. Renters under the same lease are legally considered jointly liable for full payment of rent. If a roommate fails to pay their portion and rent is not paid in full within the 30 day window, late notice submitted to TransUnion by the landlord will reflect on all leaseholders credit report.
6. What happens if a landlord reports rent late when it was actually paid on time?
Tenants have the ability to dispute any inaccurately reported late payments. Please contact us at Support@avail.co for assistance.
7. What if tenants have existing late payments when their landlord activates CreditBoost?
From the time that a landlord activates CreditBoost, tenants with existing overdue payments will be given a 30-day grace period to resolve the delinquency. During this grace period, both on-time and late payments are not reported.
Once the 30-day grace period has ended, landlords can report any rent that is more than 30 days overdue.
8. Will any previous on-time payments be reported with CreditBoost?
Payments made after CreditBoost is activated will be reported automatically to TransUnion. Tenants can use the Account Health feature to report prior rental history for up to two years, even for payments made to non-Avail landlords.
9. Can payment or non-payment on charges other than rent be reported?
No, only rent balances can be reported as paid on time or 30+ days overdue.