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How Freddie Mac helped renters establish over 27,000 credit scores with the help of Esusu
Background
Freddie Mac is one of the largest lenders for multifamily buildings in the United States. In 2021, the organization launched its Credit Building Initiative and found that, of the 44 million renting households in the United States, the vast majority did not see their on-time rent payments reported to the major credit bureaus.
Freddie Mac began working with Esusu in November 2021. The two companies had a similar goal: helping low- and moderate-income families reach financial security by making rent reporting attainable for as many renting households as possible.
Solution
Over a year and a half since the initiative began, the results show a massive shift for renters, borrowers, and lenders.
16,900+
renters received
a car loan
27,000+
new credit scores
established
184,000+
units reporting
rent
Creating opportunities through education
Establishing credit scores for renters was just the first part of the solution. Many low-income residents, especially those who had been credit-invisible before they began reporting, were eager for resources on what to do with the new financial opportunities they had gained.
Renters accessing rent reporting through the initiative also have access to Esusu’s Renters Marketplace, which helps educate renters on credit and connects them to financial literacy resources.
It includes access to Freddie Mac’s financial literacy hub, CreditSmart Essentials, which offers free financial education to help renters set themselves up for financial success as their economic stability improves.
Results
184,000+
units reporting
rent
27,000+
new credit scores
established
102,000+
renters have opened
new lines of credit
16,900+
renters received
a car loan
46pts
average credit
score increase