I never heard any credible confirmation of the claim that I'm bringing forward, so at the time it may have just been fake news. The story did disappear almost as fast as is showed up. The claim was that Trump, along with various other Republican politicians and hopefuls had suggested requiring that all three major credit bureaus apply rent payments to your credit score in a way to boost the economy. I've been mulling the idea over in my mind for a year now and I've had a lot of thoughts on this from both sides of the argument.
When I started doing research to try and find who it was that initially said this, I actually found out that Equifax is actually using this method voluntarily. According to http://www.experian.com/rentbureau/rental-payment.html property owners have the option to report on-time and late rent payments to the bureau. Other websites recommend finding and renting only from properties that offer the service in a way to help move your life forward, but I will come back to the benefits of that later.
One of the biggest beliefs that typecasts people into the Republican Party is the belief that the Government should get out of private business. One of Trump's biggest promises during his campaign as a Republican was "For every new regulation, two have to go away". With his business background, it's obvious to see how our President can hold disdain for these types of rules that make it harder both to grow your business and hire on more people. While it's been downplayed and mostly ignored by most news stations and commentators, our Congress has actually met and exceeded this particular mark. Fox News host Sean Hannity regularly cites in his show that our legislators have averaged 16 regulations stricken for each one they have brought forward. It would be hard for me, given that I am in favor of as many regulations going away as we can get away with, to then go to Speaker Ryan (my District's representative), and request that he legislate a demand for how FICO, Transunion, and do business, along with all of the individual property owners across the country.
But maybe we can sell it.
According to liberal news headquarters, CNN, the US is on it's fastest growth in 3 years as of August. Hiring for careers is on the rise. Career data processing giant ADP reported 237,000 jobs added in August, according to the same article. Home prices are rising steadily, and the fight for $15 has mysteriously disappeared as many of the members have found employment in those numbers outside the minimum wage market. All of this is coming only on the promise of tax reform and the repeal of the ACA. And we can do better. What do you think would happen if the people who had to default on their mortgages and cars suddenly had credit? What if the people who grew up into this economic recession that have never borrowed money suddenly had payment history? What if the people who desperately need a reset on late student loans had the creditworthiness to get them refinanced into lower interest rates and get the payments affordable again? Homebuying is on the rise after we had some of the lowest home ownership rates in history, but there are still millions of American workers who can now afford a home, but can't get a mortgage in spite of the fact that they've been throwing money away in rent for years. It may be more prudent for people to buy a $1500 car with cash, but the market on those pre-owned vehicles is starting to get really rough as more and more customers are fighting over those cars. It sure would be nice if we could inject some more new cars into the market and drive some of the used car prices down. Millions of people look at a product or service that isn't being provided every day and tell their co-workers that if they had some money or could get some money, they could provide or improve the product.
Convincing the big three bureaus to get behind a bill that would require credit reporting of rent payments on time would not be difficult. Increasing credit scores across the country would simultaneously increase the demand for the services of these entities, as well as increase demand for homes and new cars. I'm sure Ford and Century 21 would be happy to lend their support as well. I know that the people involved would get behind the measure in leaps and bounds. I actually think the only people who might have a problem with it would be the rental property owners. Rental property is in huge demand right now and most of the rent prices do, unfortunately, reflect that. When Rebecca and I moved into our apartment, she showed me an ad for a place just down the road from us that was for sale. The listing was for a three-bedroom home with property that would be half of what we are paying in rent even with a high interest rate. Property owners do not have to be competitive right now for renters. If a guy backs out on a place, three more are in line right behind him waiting to rent the place. With a down economy and so many people with bruised credit, continuous renting is a vicious cycle that leaves people with no help to their scores, and no equity. Those who rent also have very little in the line of a way out.
Do you think that finding ways to increase credit in today's America will boost the economy? Would a legislation like this help you at all, personally? I always welcome comments and discussion both here and over on Twitter. My handle is @edsblogtw1tter if you want to follow me to comment or read previous articles from my feed. If you like what you've read, go ahead and hit that like button, and consider hitting the retweet button as well. That would be cool of you. Remember, never take the words of journalists, bloggers, or podcasters as Gospel. Find all the facts, and draw your own conclusion. Thank you for reading.
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