Yes, a rental contract can help in obtaining a loan, particularly for individuals with limited traditional credit history. Landlords who report rental payments to credit bureaus can enhance borrowers' credit profiles, demonstrating timely payment behavior. However, the effectiveness depends on the landlord's participation in credit reporting programs and the lender's willingness to consider such data.

Rental contracts contribute to loan approval by providing verifiable payment history. Credit bureaus like Experian and TransUnion partner with services such as RentTrack to aggregate rental payments, which are then included in credit reports. As of 2023, approximately 20 million rent payments were reported annually through these programs, according to Experian. Lenders, including mortgage companies, may evaluate rental history as part of non-traditional credit assessments. For example, Fannie Mae's 2022 guidelines state that verified rental payments can substitute for traditional credit references for qualified applicants. However, only about 30% of landlords currently report rent payments, limiting widespread adoption. Additionally, a 2021 Federal Reserve study found that consumers with reported rental history had a 15-20% higher likelihood of loan approval compared to those without, when other factors were constant. Ultimately, while rental contracts offer a pathway to improve creditworthiness, their impact hinges on reporting mechanisms and lender policies. This approach is especially beneficial for gig workers, young adults, and immigrants building credit from scratch.