However, until now rent payments were rarely considered in mortgage applications. Only 5% of current renters have any information about rental payments on their credit reports
because landlords generally don’t share that information with credit bureaus. Often rent payments only appear if there is a problem.
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Up to now, lenders evaluating a loan application from co-borrowers have only considered the lowest credit score to determine creditworthiness, which means if one of the co-borrowers has a score below 620, the pair wouldn’t qualify for a mortgage.
Now, lenders can average the lowest and highest FICO scores to determine whether co-borrowers meet the minimum credit score requirements. For example, if you have a credit score of 700 and your partner has a score of 600, the lender will now be able to use the average between the highest and lowest score, in this case, 650, to determine eligibility.