Does it Matter if You Rent or Own a Home?

Absolutely.

Consider the fact that a mortgage is most likely the largest purchasing decision a person makes in life. If debt ratios are maintained, you should be spending about one third of your monthly income on housing. That is a large amount of money no matter how much you earn!

Now consider the fact that credit bureaus do not allow reporting of rental activity. That’s right. Along with a few other activities, credit bureaus do not accept rental reporting data, so your payments of one third of your income are not going to affect your credit.

Also consider the percentages of the credit score factors mentioned before. If such a large portion of your credit score is comprised of your pay history, then you want such a large portion of your pay activity to count in your favor.