One reason for a low credit score might be a lack of information. And one start-up thinks sharing your rent history can change that.
“The credit bureaus will be conservative if they don’t know very much about you, and what 'Pinch' is really bringing is more data,” Maia Bittner, founder of Pinch Rent told Cheddar. “Pinch mails rent checks to your landlord, and we use a record of those rent checks with some third-party data sources in order to report your payment to the credit bureaus."
The CEO told Cheddar that the company only reports rent payments right now, but might take on other financial data in the future.
“We’re looking at expanding a little bit,” Bittner said. “Should we start pulling in utilities data, your cell phone data, so that we can grow with our customer as they grow?”
Pinch Rent was founded about a year ago and has raised $1.5 million to advertise and expand its technology. The service costs $6 a month.
For full interview click here.