DELAWARE- Delaware is trying something new to help renters boost their credit scores and state officials say it’s already showing results.
The state just wrapped up a first-of-its-kind pilot program that let renters report their monthly rent and utility payments to credit bureaus. Delaware is only the second state in the nation to test this idea.
The Delaware State Housing Authority teamed up with Self Financial and the non-profit NeighborGood Partners to run the yearlong program. About 225 people took part, mostly lower-income renters or those receiving housing assistance.
Their average credit score went up by nine points. Fourteen percent moved from subprime to prime credit which can help with qualifying for loans and lower interest rates.
Gov. Matt Meyer said the program “gives hardworking Delawareans credit for the payments they’re already making and opens doors to opportunity.
Delaware’s results mirror those from Colorado, which ran the first statewide rent reporting pilot in the country.