Credit-Building Opportunity: How Pinata and Freddie Mac Are Transforming the Rental Payment Experience

For millions of American renters, paying rent on time has never translated into credit score rewards—until now. A groundbreaking partnership between Pinata, a rapidly expanding rewards and credit-building membership platform, and Freddie Mac’s Multifamily division is fundamentally changing how renters can leverage their most significant monthly expense to strengthen their financial profiles.

The Scale of the Problem

The statistics are sobering: only approximately 5% of roughly 80 million American renters currently receive credit recognition for their on-time payments, according to recent analysis. This means the vast majority of renters—despite maintaining perfect payment histories—remain invisible to credit bureaus, severely limiting their access to favorable credit terms, mortgage pre-approvals, and other financial opportunities.

How Pinata Rent Reporting Works

The solution is elegantly simple. Pinata’s platform acts as a bridge between property management systems and the three major credit bureaus, automatically reporting on-time rent payments in compliance with industry standards. For renters, this means building credit through an expense they’re already making.

The impact is measurable and significant:

• Renters with average credit can see score improvements exceeding 100 points within months
• Renters starting below 500 (subprime category) may experience credit increases up to 250 points
• Back-reporting of up to 24 months of historic on-time payments further accelerates credit building

Freddie Mac’s Commitment to the Initiative

Under the partnership framework, participating properties financed by Freddie Mac will have two years of Pinata membership costs covered, eliminating financial barriers for eligible renters. This removes the administrative burden of rent reporting from property owners while simultaneously creating a standardized market approach to tenant credit building.

Corey Aber, VP of Mission, Policy, and Strategy for Freddie Mac Multifamily, emphasized the broader significance: “Pinata’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.”

Real-World Impact and Opportunity

For the renter, these credit score improvements translate into tangible life benefits: qualification for higher-tier apartments, access to auto loans at competitive rates, and approval for premium credit cards with favorable APRs. These advancements compound into greater financial stability over time.

Lily Liu, CEO of Pinata, frames the partnership’s ambition clearly: “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.”

The Broader Implications

This Pinata rent partnership represents a shift in how the housing market addresses financial equity. For property owners in competitive rental markets, it provides a differentiated amenity that strengthens tenant retention. For the millions of renters previously “credit invisible,” it opens pathways to financial inclusion that were previously inaccessible.

The initiative positions rent—the largest monthly expense for most households—as a legitimate wealth-building tool rather than a financial obligation with no credit recognition.