Credit reports often reflect three types of loans or accounts for customers: installment loans, revolving lines of credit, and collection accounts.
An example of an installment loan is a mortgage or auto loan that has fixed, predictable monthly debt payments that pay off the loan over a set period of time. An example of a line of credit would include credit cards, which have debt that accrues over time and is paid off via monthly payments. These are all tradelines that creditors have reported to the credit bureaus.
When you start using Boom's rent reporting product, a new tradeline is added to your credit report with Experian, Equifax, and TransUnion, just like when you secure a new loan or credit card. However, instead of a bank or credit card company's name, you'll see "Boom" or "Boom Pay". This indicates that you're making consistent, reliable rent payments as verified by Boom, positively contributing to your credit history.
Why does my balance show as "$0" in some apps?
Rent does not fall into any of those three categories, as it isn’t considered a loan or a form of credit. Rental payments are considered a month-to-month payment and are not considered a debt liability. Rental payments do not accrue on your credit report, as that would incorrectly reflect an outstanding balance owed to the company that submitted the tradeline information to the credit bureaus.
Why Does My Payment Show as "$0" in Some Apps?
In certain credit score apps, you might notice your payment shows as "$0." This isn't an error or issue with Boom. Instead, it's related to how these apps are designed to display certain types of data.
Many apps display ongoing, non-loan payments like rent as having a "$0" payment. But rest assured, when your raw credit report is accessed by lenders, they see the complete details of your Boom payments including the rent amount.
Below, we've provided examples of how Boom's tradeline has appeared for other customers in some of the most common credit scoring apps.