Published on June 29th, 2018 | by William Charles9
Pinch Rent Shut Down Effective Immediately (Credit Score Builder)
Last month we shared a new way to improve your credit score called ‘Pinch‘. The service claimed that they were able to improve users credit scores by having rent payments recorded on your credit report as an installment loan. This helps people without an installment loan (car loan/mortgage normally) as 10% of your FICO score is based on your credit mix. FICO & other score issuers like to see a mix of both installment and revolving loans (credit cards). When I first saw it I was a bit surprised that they’d be allowed to report rental payments as an installment loan, because they aren’t really one and the credit bureaus themselves have tried more or less unsuccessfully to collect rental data in the past (e.g TransUnion’s MySmartMove).
It looks like this was the case as Pinch has sent out the following e-mail to users (emphasis mine):
Thank you for sharing your documents and trusting us to report your rental payments.
It is with sincere regret that we inform you that Pinch will be permanently shutting down.
As of now, the credit bureaus will no longer accept the information you shared with us.
We are proud that while Pinch was operating, we were able to report most of our active customers’ rental payments to the credit bureaus. We feel passionately that your strong rental history should be reflected on your credit report and are very disappointed that we weren’t able to provide this service for you. We have deep gratitude for your trust and support, and sincerely apologize that we weren’t able to pull through.