If you recently received an email from your building that they are beginning to use Esusu to help you build your credit, welcome! You likely have some questions about who we are, what rent reporting is, and what might happen to your credit.
We’re here to answer these questions and help you understand the credit system a bit better.
A little about Esusu
We’re a financial technology company that partners with real estate companies around the country to enable renters to establish and build their credit through Esusu Rent Reporting.
We work directly with your property manager to report every on-time rent payment you make to the credit bureaus to impact your score positively. If your property is already using Esusu, you’ll be learning more about the process through our onboarding communications.
How credit scoring works
Your credit score is a three-digit number that rates your ability to pay back any debt you take on. This may come in the form of loans, credit cards, etc.
The three major credit bureaus are called Experian, Equifax, and TransUnion. They’re the companies that have created scoring models that give you a credit score based on various factors.
When you open a new credit account, it will always affect your credit score. These accounts are also called “tradelines.” Typically, a new tradeline will lead to a temporary decrease in your score. As you pay off the money you owe on the account, you’ll see your score start to increase.
What to expect when you begin reporting rent with Esusu
When you start reporting rent with Esusu, your credit is reported and scored like any other account (or tradeline) on your credit report. A credit report is like a report card of all of your credit-based activity.
Though there are many variables (such as how many open and closed accounts you have on your report) that impact your score, you can expect a slight and temporary decrease in your score when you start working with Esusu.
As we continue to report your on-time payments, the credit bureaus will recognize that you are consistently paying what you owe in rent. Instead of recognizing the new rental account as a risk, they’ll see it as an indicator that you deserve a higher score. Because we only report on-time payments, the credit bureaus will not decrease your scores for missed payments.
The graph below outlines what a new Esusu resident’s credit score might look like in the first few months of rent reporting. Keep in mind, other credit lines you have open (like credit cards or loans) affect your credit too. Even though on-time rent payments can help improve your score, simultaneously missing credit card payments will bring your score down.
What happens when your Esusu rental account closes?
An Esusu tradeline can close for many reasons, and you can expect a slight change in your credit score if and when it does.
Your Esusu account may close because your lease has ended, and you have decided to move. In this case, the credit bureaus will look at this closed line of credit like any other loan or bill you have paid in full. You may see a slight dip in your credit score, but that will rebound and leave you at a net positive from when you started.
In other cases, Esusu may choose to close the tradeline for you. This happens in cases where a resident has agreed to have their rent reported but hasn’t made enough on-time rent payments to see a positive impact on their credit.
If you are behind on rent payments and your account has been open for less than six months, we’ll delete the tradeline completely. Why? Because your score will likely drop from the opening of the account but not increase without new on-time payments. Deleting the account will bring you back to where you started before Esusu appeared on your credit report.
If you are consistently behind on rent payments, but your account has been open for more than six months, we’ll close the account to preserve your on-time payment history. The account will remain on your credit report and allow you to keep that positive impact on your score.
What if you begin using Esusu Rent Reporting and decide you no longer want to participate after a few months? In this case, the account will be deleted and wiped from your credit report.
Have additional questions? We’re here to help!
Renters whose properties are currently using Esusu Rent Reporting should check their email for onboarding information. You can also call, text or email us at the information provided below with additional questions. Or check out our FAQs.
Hours: 9am EST to 5pm EST
If you think your property is using Esusu Rent Reporting, but you haven’t received an email from us, reach out to your property manager directly.