A Miami Beach-based startup has launched a service to help renters build a credit history by enabling them to report their timely rent payments to credit bureaus, potentially improving their financial standing at a time when tens of millions of Americans struggle to afford the high cost of housing.
Rent App, launched by proptech company Visible in 2023, automatically reports on-time rent payments to credit bureaus at no cost, making renters’ positive payment history known to potential creditors. The solution addresses what the company sees as a gap in the existing credit reporting system.
In addition to offering renters a potential way to improve their credit scores, the service could also prove useful to landlords by incentivizing tenants to cough up rent payments on time – which could reduce late payments and evictions.
“We see this as beneficial for everyone involved,” said Visible co-founder and CEO Andrew Borovsky in a recent statement. “Renters have the opportunity to build credit, and landlords may see more consistent, on-time payments. It’s an outlook that could become more common in the rental industry.”
Borovsky is a veteran product designer and serial entrepreneur who has held executive leadership roles at Cash App, Cadre, and mobile payments company Square; he also co-founded New York design firm 80/20, which was acquired by Square in 2012.
Visible’s founding team also includes Gerard Knight, Alexander Labowitz, Andrew Lin, and Leonid Movsesyan. Investors in Visible include Thrive Capital, Khosla Ventures, Slow Ventures and Not Boring, according to the startup’s website. Visible raised $15 million as of October 2023, Fortune reported at the time.
Borovsky noted that the company is looking to develop various financial services for renters, ranging from credit-building to savings and investing. “We aim to be a resource for those looking to build a financial foundation through renting,” he said.
Roughly half of America’s 45 million households that rent their home are cost-burdened, meaning rent and utilities account for more than 30% of their total income. In addition to the cost challenge, the inability to use rent payments in building credit history was one of the main pain points for renters identified by Fannie Mae in a study released early this year.