The Biggest Credit Hurdle for Renters Who Want to Buy

The problem

Zillow found that 32.88 percent of mortgage applicants are denied for insufficient credit history, not missed payments or too much debt. It is the most common reason for denial.

What is changing

VantageScore has a newer model, approved by the Federal Housing Finance Agency, that can take on-time rent and some utility payments into account. A VantageScore study found that nearly 4 million renters could become mortgage eligible if their on-time rent counted. It is not automatic, and not every lender uses every model.

How renters can get credit for rent

• Ask your landlord or property manager whether rent is reported, and opt in if not.
• If they do not report, look at rent reporting services and check fees and which bureaus they use.
• Check your credit reports for errors, and dispute mistakes.
• Pay bills on time, keep balances low, and avoid applying for many new accounts at once.
• Keep older accounts open, even if you rarely use them.
• Consider a secured card or becoming an authorized user to add history.

Talk to a lender early

A short conversation with a loan officer can show you where you stand and how long it may take to be ready. David’s background includes several years as a mortgage loan originator, and he can connect you with Denver-area lenders. See also What Credit Score Do You Need to Buy a Home?

Sources and dates

Zillow, VantageScore, FHFA, Experian, the CFPB, and FICO, as reported in October 2026. Graphics by Keeping Current Matters.

This article is general information, not legal, tax, financial or inspection advice. Every home and situation is different, so confirm details with a licensed inspector, lender, attorney or tax professional.

About David Parks

David is a Greater Denver real estate advisor with eXp Realty and The Apollo Group (Colorado broker license FA100103211). He has closed more than $55 million in volume, earned eXp Icon status in 2025, and holds a 5.0 rating on Zillow from 27 verified reviews.

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