Your credit score isn’t actually a single number. There are different agencies that use different factors for calculating different scores. Equifax is one of those agencies, and they’re adding a new factor to their metric: Homeowners’ Association (HOA) fees.
We previously announced that FICO was planning to use a new score that took your bill payments into consideration. This is inspired by the same idea: paying your bills on time, including HOA fees, generally shows financial responsibility, which is essentially what a credit score measures. Data aggregator Sperlonga will provide the data. In a press release, Equifax’s Senior Vice President said:
Equifax is committed to providing consumers with additional means for building their credit histories. Introducing new sources of data beyond what has traditionally been found on credit files can provide additional insight into a consumer’s financial behavior and help deliver expanded credit access.
In other words, if you pay your HOA fees on time, it could improve your credit score (at least your Equifax score). On the other hand, if you’re late, it could hurt you. For more on this update, head to the full press release at the link below.
Sperlonga Announces Agreement with Equifax to Begin Reporting Homeowner and Condominium Association Payments | PR Newswire Via Credit.com
Photo by Ishmael Orendain.