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Posted in Mortgage
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BreatheEz

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Rental question
The apartments I live in have some perk that for $5/mo they will report your on time payments to the credit company. They say it will help your credit (not sure if it will) because they only report the good/on-time payments not if you're late or default a month (I don't have this problem). I see it on my credit report now, but if I didn't want to pay the $5/mo would those past good reports matter or is it like closing a CC which will hurt it? I also see they report how much per month my rent is, I hope that doesn't hurt my credit by showing a bigger DTI. Can anyone answer this and if I should or shouldn't quit paying for this? thank you!

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Top Contributor
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If you're young and Building your credit

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or repairing your credit this could be a benfit.  If your score is Average or better, I'd say its not worth it.  

For $60 a year, it might be worth the money if you need more creditors reporting, but as far as I understand it, It won't have a real impact if you already have a decent credit report.  (It does provide them with a nice little side income though, as it probably costs them $1 or less to report each month) 

Ideally you want 6+ bank and store credit cards, a personal or auto loan and a mortgage.  While you're building your credit it wouldn't hurt to have the landlord reporting you on time payments.  Be aware that they may also be required to report late payments since they report monthly.    The DTI ratio wouldn't be effected untill you're trying for that mortgage, but a good lender will take that into account since you wouldn't be paying rent and a mortgage at the same time. 

So, Take in to account your own situation and you'll have to decide if its worth it to you. 

Good lcuk 

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