Many of the common household expenses people pay don’t impact your credit score since they aren’t reported to the credit bureaus. As a result, you may not be getting a benefit from paying various bills on time. Esusu is working to change that, allowing people to boost their scores by reporting their on-time rent payments. Here’s a quick Esusu review to help you decide if the service may be right for you.
What Is Esusu?
Esusu is a platform that reports rent payments to the major credit bureaus, allowing renters to get credit for their on-time payments and potentially boost their scores. There are two programs available; one for renters who rent properties through a participating owner or building manager and one for independent renters.
Additionally, Esusu benefits property owners and managers by essentially encouraging their renters to pay in a timely manner. That could boost earnings, lower eviction rates, and even increase tenant satisfaction since they’re getting a chance to boost their credit score.
How Does Esusu Work?
How Esusu works is relatively straightforward. The company captures data from renters and property managers and owners, allowing them to report on-time rent payments to the credit bureaus. Since this helps renters build a positive payment history, it can then cause their credit score to increase, depending on their other borrowing and payment activity.
It is important to note that people actually have several credit scores, not just one. Additionally, while on-time rent payments will boost a few of those scores, it isn’t factored into them all, even if the positive activity is reported to the credit bureau.
As a result, Esusu isn’t guaranteed to boost your credit score across the board, and depending on the score a lender uses when assessing your creditworthiness, Esusu may not always help you increase your eligibility for all credit products.
Does Esusu Report Late Rent Payments?
While the company will report your positive rent payment history to the credit bureaus, late rent payments aren’t reported. As a result, Esusu will never directly harm your credit score based on being late with your rent.
However, late rent payments can mean that Esusu will stop sending rent payment activity to the credit bureaus. Additionally, the company may close your account. If so, you have to wait a minimum amount of time – typically at least six months – before you can use the service again.
The Benefits of Using Esusu
In most cases, the biggest benefit of using Esusu is the ability to see your credit score rise by making on-time rent payments. Without a rent reporting service, renters don’t typically get credit for this positive financial behavior. As a result, it can help those with poor or no credit build better scores. For those with good credit already, it could potentially let them transition into excellent credit territory.
The Esusu app also provides renters with options for monitoring their credit scores. As a result, they can see the positive impact on-time payments make right from the app. Plus, they can keep an eye out for shifts in their score that might indicate other issues, such as identity theft.
With the Esusu app, renters may be able to make better credit decisions. For example, the ability to see their credit score could help renters determine their odds of approval if they need to apply for other forms of credit.
Finally, if you might be late on a payment, the Esusu Rent Relief Fund may be able to help. That gives renters a way to protect their credit score when they experience an unexpected financial hardship.
What Is the Esusu Rent Relief Fund?
The Esusu Rent Relief Fund is a program that helps provide renters with financial support if they experience financial hardship in the form of a 0 percent interest loan. Any renter in the United States that lives in a property that Esusu works with and that’s covered by the program can apply.
The application process only takes a few minutes to complete, requesting basic information regarding your situation and your rental agreement. The application is reviewed by Esusu, and a decision is normally made in four to six weeks. If you’re approved, the rent relief payment is sent directly to your landlord, covering the rent you couldn’t pay. Then, you pay back the 0 percent loan based on the terms outlined in the agreement.
One nice benefit is that you can review your terms for the loan repayment before applying. As a result, you can see how the payments will impact your budget before you move forward.
How Much Will Esusu Boost Your Credit Score?
Ultimately, how much your credit score will change after signing up for Esusu can vary. While the company boasts an average increase of 51 points, you may see a smaller or larger impact personally. It all depends on your broader credit situation and your borrowing activities, so keep that in mind.
Is Esusu Right for You?
In many ways, Esusu is all reward and no risk. If you make timely rent payments, that positive activity gets reported to the three major credit bureaus, which could boost your credit score. Additionally, Esusu won’t report missed payments, though they might close your account if you’re late with your rent.
The main challenge is that data reported by Esusu might not boost your credit scores across the board, as not all scoring models factor in that information. One example is FICO Score 8, which is a calculation most lenders use to assess creditworthiness for financial products like credit cards, mortgages, or personal loans. As a result, the benefit of using Esusu to boost your scores may be a bit limited.
However, as mentioned above, Esusu won’t harm any of your scores. Since that’s the case, it’s worth considering.
Did the Esusu review above help you determine if it’s right for you? Have you used Esusu and want to tell others about your experience? Share your thoughts in the comments below.
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.