Piñata Will Join Freddie Mac’s Multifamily Division as its First Credit Building Rewards Partner, Expanding Opportunities for Renters to Improve their Credit Scores and Get Rewarded Just by Paying Rent on Time
Paying rent on time can give renters a myriad of benefits these days, but for the first time, they can be rewarded with better credit, thanks to Piñata – the nation’s fastest-growing rewards and credit-building membership program. A just-announced partnership with Freddie Mac is set to make this “perk” the rule, not the exception, for millions of Americans.
As a member of the Freddie Mac credit building initiative, two years of Piñata’s program cost are covered for eligible properties backed by Freddie Mac financing. This makes rent reporting for credit-building free for participating property owners and renters while building more financially resilient renters.
Piñata’s platform will now act as the middleman harmonizing the relationship between property management companies and their tenants, and moreover, “will pave the way for millions of renters who were previously credit invisible to start their credit journey by establishing good credit scores,” says Lily Liu, CEO of Piñata.
Simply by paying rent on time, renters on the platform can boost their credit scores by over 100 points within the first few months of reporting. Renters starting with credit scores below 500 (subprime renters) can see their credit scores increase up to 250 points. To put that into perspective, these increases could mean getting approved for your dream apartment, acquiring an auto loan, or getting accepted for a top-tier credit card.
The partnership with Freddie Mac is poised to dramatically shift what’s currently a dire narrative for millions of Americans. It is estimated that only under five percent of roughly 80 million American renters get credit for their rent payments (New York Times, 2024), limiting their ability to qualify for leases, loans, and credit cards with favorable APRs that can strengthen their financial stability.
“Our mission is to make sure renters are rewarded and get the credit they deserve for their largest monthly expense,” continues Liu. “Working with Freddie Mac expands Piñata’s reach, providing a significant value add for property owners in a fiercely competitive rental market. By addressing the financial challenges faced by renters across all asset classes, we’re not just making a difference—we’re laying the groundwork for their financial success by building their credit scores.”
Here’s how it works: Piñata’s platform seamlessly handles reporting rental payments to all three primary credit bureaus in adherence to industry standards. This innovative solution relieves property owners of the administrative burden of rent reporting, addressing a significant challenge in reporting rental data to the credit bureaus. Furthermore, Piñata back-reports up to 24 months of historic on-time rent payments, which typically has the single biggest impact on a renter’s credit score. Piñata’s technology and expertise are world-class, whether it be verifying rental history, incentivizing rent reporting, or seamlessly delivering on-time rental payment data from property management software platforms to credit bureaus.
“Freddie Mac Multifamily is proud to be working with Piñata as we expand our on-time rent-reporting program,” said Corey Aber, VP of Mission, Policy, and Strategy for Freddie Mac Multifamily. “Piñata’s innovative model brings a fresh approach to helping renters build credit, which supports the effort to establish a market standard for resident-focused, on-time rent reporting.”For more information about Piñata, visit Piñata.ai.
About Piñata
Piñata is the nation’s largest rental membership program on a mission to make renting smarter and more rewarding for tenants and landlords alike. The company, founded in 2020 and led by women of color, offers renters a unique set of financial benefits, including free rewards and credit-score-boosting opportunities, while also providing a unique amenity for landlords. Piñata has raised $20 million to date from leading Proptech investors led by Wilshire Lane Capital.
About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube.
