Visible, a company in the real estate technology sector, has introduced a new feature within Rent App designed to help renters build credit history. Launched in early 2023, the credit reporting feature helps renters improve their credit scores by reporting timely rent payments to the major credit bureaus. This addition has garnered considerable interest from both renters and landlords, offering a fresh approach to financial management within the rental industry.
Bridging the Credit Reporting Gap
Rent payments are a significant monthly expense, yet they have traditionally not been reflected in a renter’s credit history. This gap has hindered renters’ ability to build credit,which is essential for securing loans, credit cards, and other financial products.
Visible’s new credit-building feature aims to fill this void by allowing renters to boost their credit profiles through their rent payments. Andrew Borovsky, CEO of Visible, describes the initiative's core motivation: "We saw an opportunity to help renters build credit history by reporting their on-time rent payments. This feature enables renters to demonstrate theirfinancial responsibility and enhance their credit standing."
Streamlining the Rent Payment Experience
Rent App offers a seamless and secure method for paying and collecting rent, eliminating the need for traditional methods such as checks, cash, or money orders. This no-fee platform supports unlimited transaction amounts and uses industry-standard Automated Clearing House (ACH) transfers. ACH transfers enable the direct electronic movement of funds between bank accounts, so payments are deposited directly into landlords’ accounts without hidden fees or hassle.
Unlike other payment options that may impose limits or additional costs, Rent App provides a straightforward, cost-effective solution. Renters can schedule one-time or recurring payments, and the app's integration with credit bureaus ensures that timely rent payments are reported, thus contributing to their credit history.
Edge Over Competitors
Rent App stands out in a crowded market by offering unique features that differentiate it from competitors. The app’s no-fee structure, combined with its credit-building capability, addresses common limitations of other payment methods, which often come with weekly limits and hidden fees.
Rent App is developed by a team with extensive experience from tech giants such as Adobe, Apple, Cash App, Dropbox, and Square. This expertise informs the app’s design and functionality, ensuring that it meets the needs of both renters and landlords effectively.
Anticipating Future Developments
Visible plans to expand Rent App’s capabilities by integrating additional financial management tools and forming partnerships with financial institutions. These updates aim to provide renters with more comprehensive financial solutions and enhanced transparency within the rental market.
"We view this feature as just the beginning," Borovsky explains. "Our goal is to continue developing tools that offer renters better financial management options and contribute to a more transparent rental market."
Expanding Financial Inclusion
Beyond its immediate impact on the rental market, Visible's credit-building feature holds promise for increasing financial inclusion. Renters with limited credit histories can benefit from the opportunity to build credit through their rent payments, potentially unlocking new economic opportunities.
"This feature offers a pathway for renters who have been underserved by the traditional credit system," says a consumer advocate. "By allowing timely rent payments to contribute to credit scores, Visible is fostering a more inclusive financial environment."
The Path Forward
Rent App represents a notable advancement in rental payment solutions, focusing on renters'; financial well-being. As the feature gains traction, its influence on both the rental market and individual renters' lives will continue to unfold.
The company’s commitment to advancing financial inclusion highlights its role as a market leader in real estate tech. By providing a platform that integrates credit-building benefits with a user-friendly payment system, Visible is setting a new standard for the industry.
