When you apply for a loan, lenders will look at your credit score to know how reliable you are at borrowing and repaying money. This is because lenders want to know what risk they would take by loaning money. The higher your score, the more likely you are to qualify for a loan with the most favorable terms.
Mortgage giant Fannie Mae is permitting to include history of rent payment as part of the mortgage approval process. This means that it’ll be easier for borrowers with limited credit histories to get better access to home loans.