The Recurring Payment Reporting Process – And How It Helps Fix Your Credit, Faster
According to Consumer Reports, roughly 32% of Americans use a product or service that comes with recurring charges (something that is charged automatically every month, or automatically withdrawn from a registered account). Additionally, almost 65% of us pay rent for housing, and generally along with that, utility charges like electricity, water, garbage collection, and often internet or cable service. Why does this matter? It means that the vast majority of Americans aren’t getting credit for spending behavior that tells an accurate picture of how responsible and reliable we really are.
Typical Credit Reporting
Why is that? The three major credit reporting bureaus in the United States typically only use a potential borrower’s credit utilization when it comes to evaluating their credit score. This means they look at factors like:
- How long you’ve had a credit card
- How often you pay it on time
- How much you owe as it relates to how much credit you have available
- What kinds of credit you use — like multiple credit cards, installment loans, and mortgage loans
- How much new credit you have, for example, opening up several new credit card accounts at once often indicates you might be a higher-risk borrower than someone who hasn’t applied for credit in several years
And while these factors account for many of the ways we spend money, there are several other everyday expenses we’re used to paying for, completely, and on time.
Credit Reporting — Accelerated, With Zingo
Zingo’s automated service solves this problem — by evaluating your accounts and account history, Zingo can uncover things you’ve been paying for regularly for many as two years prior. So if you’ve been paying your rent and keeping the lights on in your apartment, Zingo reports that behavior to the credit bureaus. This helps make you look more attractive as a potential borrower. And when you look like a better borrower, you’re more likely to benefit from financial perks that can really change how you live, like better interest rates and more access to financing opportunities.
Ready to take advantage of those opportunities? Take the first step to getting better credit today!
