Does Paying Rent on Time Now Help You Get a Mortgage?

Yes, as of September 9. Fannie Mae and Freddie Mac opened VantageScore 4.0, a credit score that includes rent payment history, to every approved mortgage lender. If your landlord reports your payments to a credit bureau, paying rent on time now helps your mortgage application the same way an on-time car or credit card payment does.

I'm Ralph Estep Jr., a licensed public accountant with 30 years in the business and I'm joined by my cohost Juliet. Here's what else happened in personal finance this week.

Quick Take

• Rent payments can now count toward your VantageScore 4.0, but only if your landlord reports them

• Some borrowers saw their student loan forgiveness payment count drop after a federal recalculation this summer

• Over 640,000 GrubHub refunds worth $23 million are going out to drivers and diners right now

• Target and Best Buy refund a price drop within 14 to 15 days. Walmart won't

• Check three numbers on your auto insurance: liability limits, deductibles, and what each coverage actually costs

Does paying rent on time help my credit score now?

Only if your landlord reports your payments to a credit bureau. Rent doesn't report itself, so ask them directly, and ask which of the three bureaus they use since some only report to one. If they don't report, a third-party service can do it for a fee. Before signing up, ask which bureaus it covers, how far back your history goes, and whether your record disappears if you stop paying.

This cuts both ways. Late or missed rent payments can now hurt your score too. A card like Bilt's, which lets you pay rent by credit card, works the same way: if it reports to the bureaus, your payments help either way.

Why did my student loan forgiveness payment count drop?

The Education Department recalculated Public Service Loan Forgiveness payment counts this summer to fix errors going back to 2024. Some borrowers watched months of progress disappear without warning. PSLF forgives what's left on federal student loans after 120 qualifying payments while working full time for the government or a qualifying nonprofit.

If you're in this program, log into studentaid.gov now and write down your current count and today's date. That record is what proves a future discrepancy. Compare it to your pay stubs and bank records. If the numbers don't match, speak up, but keep making payments while you sort it out.

Is that GrubHub refund check in my mailbox real?

It could be. Over 640,000 refunds worth more than $23 million are going out now to GrubHub drivers and diners. FTC refund checks expire 90 days after they're issued. PayPal refunds expire in 30 days, so don't let one sit around.

A real check has a payee name, a dollar amount, and signing instructions on the back. Be wary of anything asking you to visit a website to "redeem" money, or asking for a fee or bank account number first. That's not how legitimate refunds work. Search for money you might be owed at ftc.gov/refunds.

Can I get a refund if a price drops after I buy something?

Depends on the store. Target refunds the difference if its price drops within 14 days. Best Buy does the same within its 15-day return window. Walmart doesn't refund online price drops.

Better habit: check other retailers' prices before you buy, even from inside the store. If you find a lower price, bring it to the register and ask for a match. Keep your receipt, since most price adjustment windows are short.

Should I cash out an old 401(k) from a previous job?

Usually no. Early withdrawal triggers ordinary income tax plus a 10% penalty if you're under 59 and a half. Together that can cost you close to 40% of the balance. A few exceptions waive the penalty, like education expenses or a first home purchase, but none of them waive the tax.

Better options: leave the money in the old plan if it allows it, transfer it directly into your new employer's plan, or roll it into an IRA. The last two avoid any tax hit since the money stays pre-tax. One catch: if the old plan sends you a check instead of transferring it directly, you have 60 days to deposit it into an IRA or the full amount becomes taxable.

Is an online-only bank actually safe?

Yes, as long as it's FDIC insured. Check in under a minute at fdic.gov. FDIC insurance covers you up to $250,000 per depositor, per bank, per ownership category, branch or no branch.

Online banks often pay higher rates because they skip the cost of branches and tellers. Just confirm you're looking at an actual FDIC-insured bank, not an investment firm or an app that only looks like one. Charles Schwab, for example, is mainly an investment company with physical locations, a different animal from a pure online savings bank.

FAQ

What happens if my rent isn't reported to a credit bureau?
It won't help your credit score under this rule. Ask your landlord if they report payments, or look into a third-party rent reporting service if they don't.

How do I check my PSLF payment count?
Log into studentaid.gov and write down your current count and today's date, so you have a record if it changes again.

What if my auto insurance deductible is higher than my lender allows?
If you have a car loan, your lender can set a maximum deductible. Go over it, and your lender can buy its own policy on your behalf (called forced-placed insurance) and bill you at a much higher cost than your own coverage.

Have a money question? Send it to us at becomingfinanciallyconfident.com/question and we may answer it on a future episode. Or watch us live every weekday, 11:30 AM to 12:30 PM Eastern, at becomingfinanciallyconfident.com/live.