When you begin to have rent payments reported by Perch, it opens a new tradeline on your credit report. A tradeline is an open account on your credit report, just like a credit card or loan. Having continuous months of on-time repayment data on your account can positively affect your credit history or score. If you have a thin file or no file (meaning you have very little to no credit history), a new tradeline like rent can be beneficial towards your score.
By linking your bank and using our free rent reporting product, Perch can report your monthly rent payments to the credit bureaus.