What’s the real impact of improved credit?

Through the hard work and dedication of our teams and partners, Esusu has helped thousands of renters establish and improve their credit scores by an average of 45 points, unlocking $21.9 billion in new credit activity. 

But what is the real impact of an improved credit score? What does $21.9 billion look like in the lives of real families? For our renters, it means financial stability and achieving goals for themselves and their families. For our partners, it means a stable cash flow and the retention of quality renters who will bring value to their properties for years to come. 

Let’s take a closer look at how Esusu renters have used their new financial opportunities. 

Esusu renters have accessed 134K+ new auto loans

At first glance, buying a new car might seem low on the priority list of someone working to improve their financial future. However, having a personal vehicle opens a person’s access to better jobs, safer communities, and even better quality food. A survey done on communities in Maryland found that the adjusted predicted probability of food insecurity was 57.3% for those with vehicle access and 75.3% without vehicle access.” Renters with access to personal vehicles have access to more and better-paying jobs, making it less likely that they will fall behind on bills.  

For Esusu renter Jamease, gaining access to a personal vehicle with her newly established credit helped her connect more easily with her family and gain time back in her day by cutting down on her lengthy commute. 

From higher credit to higher education

While student loan repayment remains a contentious issue in the United States, a college degree remains one of the most surefire ways to increase one’s earning potential. According to the Bureau of Labor Statistics, a college graduate in 2022 earned an average of $1,432 a week, as opposed to high school graduates, who earned an average of $853 a week. That’s nearly $600 more a week that could end up in renters’ pockets.

Moreover, earning a college degree doesn’t just brighten one’s personal future; it extends across generations. 70% of college graduates between the ages of 22 and 59 had at least one parent who also completed a bachelor’s or higher.

Rent reporting has a clear impact on renters’ ability to access higher education and higher salaries, giving them the financial flexibility to achieve their goals and giving a property financially stable residents. 

Building wealth by building a home

When many think of the “American Dream”, they think of owning their own home, and for good reason. Homeownership remains the easiest way to build generational wealth in America. The median wealth of a homeowning family is almost 38 times higher than that of renting families.  

For renters, the journey to being a homeowner can be much more complicated than for people who already have a history of homeownership in their families. Renters are seven times more likely to have no credit history, making it nearly impossible for many to purchase a home. 

As of October 2023, over 33,000 Esusu residents participating in rent reporting have successfully attained a mortgage, equating to over $14 billion in wealth generated for their families and stimulus for the economy.

The work continues

Esusu will continue to help bridge the wealth gap and help ordinary Americans build the financial future they deserve. Read our latest white paper to learn more about how we’re advocating for deeper research in advancing positive rent reporting to all renters.