Latest news with #WemimoAbbey
CNBC
11-06-2025
- Business
- CNBC
Americans pay trillions in rent, but few get credit score boost for it
An estimated $1.4 trillion is paid to landlords of residential properties every year in America, but only 20% of those landlords choose to report the rent paid. That has big implications for the credit scores and credit histories of millions of Americans. Reporting rent paid on time to credit bureaus can significantly boost credit scores, but since it has not traditionally been a common practice, some renters end up having no credit history at all, making them "credit invisible," limiting their ability to get a loan, a car, a house and a lot more. Over 50 million Americans lack a credit history with the three major credit bureaus: Experian, Equifax and TransUnion. "We're leaving over $5.3 trillion on the table, we've got to do better," said Wemimo Abbey, the CEO and co-founder of Esusu, which was named to the 2025 CNBC Disruptor 50 list, in an interview on CNBC's "Worldwide Exchange" on Wednesday. Esusu is a credit score reporting service which has partnered with 75% of the largest rental companies and more recently created a direct line for renters to report their rent payments. "We have democratized access because you have a long tail of people who don't live in commercially managed housing," Abbey said. Esusu has deals with Goldman Sachs, Mercy Housing, and Cushman & Wakefield, and partnerships with Fannie Mae and Freddie Mac, to increase the number of units nationally that report rent as part of credit. Credit scores, which range on a scale of 300-850, indicate the ability to pay back bills such as credit cards, and manage and limit debt owed. The lower a score, or the lack of any credit score at all, makes lenders hesitant to extend money, or they might charge extreme interest rates on a loan. Some landlords require a credit score on file to determine eligibility for a rental application, and while it's not the only considered data point, it may influence the landlord to not approve an application. This financial inequity significantly impacts minorities, with approximately 26% of Hispanic consumers and 27% of Black consumers being credit invisible or unscorable, compared to 16% of White and Asian consumers, according to data from Oliver Wyman. Immigrants are also more susceptible to invisibility as their credit file in the U.S. does not take into account their credit history in their origin country. Esusu founders Abbey and Samir Goel grew up watching their families struggle financially as immigrants from Lagos, Nigeria, and New Delhi, India, respectively, which was a founding motivation for Esusu. "When we came here, we didn't have a credit score. We went to one of the biggest financial institutions to borrow money; we were turned away and had to go borrow from a predatory lender who wanted to lend at over 400% interest rate," Abbey said. "My mother sold my dad's wedding ring. We borrowed money from church members and that's how we got started." Abbey said when Esusu started, only 10% of rent payments were reported to credit bureaus. Esusu has established credit scores for 250,000 Americans leading to $50 billion in credit activity, Abbey said. The startup's valuation has now reached $1 billion based on demand for the services. Rent is one of the largest expenditures for most Americans who do not own a home. More than 90% of renters pay rent on time, but since it's not reported, there's no record of it. Reports can be initiated either by the landlord or by the tenant. Commercially managed housing services may already have connections with one or all three credit report services, but may charge a fee to report it. Renters also have the option to directly connect with rent reporting services like Esusu, which charges a monthly fee of $2.50 to report timely payment on the renter's behalf. The record of the amount paid is expected to show up roughly 30 days after it's been paid. But paying rent is not enough; it needs to be paid on time. While some agencies may give 30 days to make up for the missed payment, others may not, and that can negatively impact a credit score. There are some other ways to build credit in addition to the rent reporting for those who lack credit histories or are looking to increase their credit scores. Becoming an authorized user on a family member or friend's credit card is one way. Getting a secured credit card, that has no annual fee, is another option. Using a credit-builder loan, in which banks provide the total loan amount after you've made a certain number of payments, and report your payment activity to the credit bureaus, is also an option for those with limited credit history and those who are credit invisible.
CNBC
10-06-2025
- Business
- CNBC
49. Esusu
Founders: Wemimo Abbey (CEO), Samir GoelLaunched: 2016Headquarters: New York CityFunding: $145 millionValuation: $1 billionKey Technologies: N/AIndustry: FintechPrevious appearances on Disruptor 50 list: 0 Nearly 50 million people in the U.S. are considered to be "credit invisible," a number that disproportionately includes low-income and minority Americans, according to research from the Office of the Comptroller of the Currency. When a consumer is credit invisible, it means that they don't have a credit history with any of the three major credit bureaus: Experian, Equifax and TransUnion. That is an institutional hurdle which can hold many Americans back from ever reaching financial security. Fintech startup Esusu is looking to change the way credit is scored, with a focus on housing. On-time mortgage payments are known to increase one's credit score, while on-time rent payments have not typically been factored into credit reports. Many renters don't have any history of credit. Esusu records rental payment data and reports the information to credit bureaus. Since its launch, Esusu has helped renters by generating over 200,000 new credit scores and raising existing credit scores by an average of over 100 points. Property managers also benefit from the on-time rent payment system. Esusu founders Wemimo Abbey and Samir Goel grew up watching their families struggle financially as immigrants from Lagos, Nigeria, and New Delhi, India, and those financial obstacles were a founding motivation for Esusu and its goal of helping Americans build strong credit histories. "When my folks moved here, our journey to pursue the American Dream was just harder than it should have been," Goel told to CNBC in a 2021 interview. "I remember just watching my parents work miracles with no credit and limited financial resources. Abbey and I like to say we are inspired by our experiences." Esusu has paved a path for itself in the fintech industry by serving as a rent reporting provider for major names in finance and real estate including Goldman Sachs, Mercy Housing and Cushman & Wakefield. Last year, Esusu expanded its presence in the direct-to-consumer market. Previously, the company was only available for renters living in an Esusu-participating property. With the launch of myEsusu, all renters are now able to use the application and can choose between a free account or a membership that offers additional tools for $2.50 per month, or $29.99 per year. Application users are able to gain credit for paying their rent on time, learn about credit building products and services, view a credit score hub and access financial resources. Esusu also has partnerships with Fannie Mae and Freddie Mac to increase the number of units nationally that report rent as part of credit and improve the credit scores across more Americans. The company has received backing from tennis legend Serena Williams' venture capital firm Serena Ventures.
CNBC
22-05-2025
- Business
- CNBC
Reflections from the 2025 CEO Council Summit: Optimism, opportunity and the best path forward
CNBC CEO Council Members convene to wrap up the 2025 CEO Council Summit. Hear from Esusu Co-Founder and Co-CEO Wemimo Abbey, Blue Cross Blue Shield Association CEO Kim A. Keck and Fortune Brands Innovations CEO Nicholas Fink on their key takeaways from this year's speakers.
Yahoo
16-04-2025
- Business
- Yahoo
LeaseLock Partners with Esusu to Expand Benefits for Renters and Property Owners
DALLAS, April 16, 2025--(BUSINESS WIRE)--LeaseLock, the exclusive provider of lease insurance for rental housing, has partnered with Esusu, a credit building and financial wellness platform, to provide renters with a powerful new tool - reporting on-time rent payments to major credit bureaus to help build credit. This collaboration reinforces both companies' shared mission of making renting more accessible, improving financial outcomes for renters, and increasing asset value for property owners. LeaseLock is transforming the industry's approach to bad debt by replacing deposits with lease insurance. Renters can pay a small monthly amount instead of a large upfront cost, while property owners are protected from financial loss due to damage and unpaid rent. LeaseLock has enabled deposit free leasing for over 2 million renters. The LeaseLock Marketplace includes screening, fraud protection, credit building, cash management and delinquency recovery solutions. By partnering with Esusu, LeaseLock now empowers properties to strengthen renter financial health while also improving retention and overall financial stability. To date, the Esusu platform has enabled over 200,000 renters to establish a credit score for the first time, while unlocking over $50 billion in credit activity. On average, millions of Esusu renters have seen a positive credit score increase of 45 points, providing them access to better quality financial products and lower interest rates. "We are thrilled to work with Esusu, given their leadership and expertise in the credit building space. Renters will now have more financial flexibility and opportunity with deposit free leasing from LeaseLock and rent reporting from Esusu," said Janine Steiner Jovanovic, CEO of LeaseLock. "Renters who pay on time are rewarded for their financial responsibility, while property owners maintain the benefit of financial protection with lease insurance." "At Esusu, we believe renting should work for renters, not against them," said Wemimo Abbey and Samir Goel, Esusu co-CEOs. "By joining forces with LeaseLock's innovative lease insurance, we are expanding financial access for renters and reinforcing our commitment to making housing more equitable for all." This partnership further strengthens LeaseLock's growing ecosystem of solutions designed to optimize asset value, enhance operational efficiency, and modernize the rental experience for property owners and renters. About LeaseLock LeaseLock is the leading insurance technology provider for rental housing. Our AI powered underwriting, LeaseLock Shield™, predicts risk and optimizes coverage for each property and portfolio. Owners and operators gain smarter loss protection while accelerating leasing and minimizing regulatory and legal risk. With over $10 billion in leases insured, LeaseLock is reshaping the way investors and operators manage financial risk while delivering significant benefits to renters. As an accredited GRESB partner, LeaseLock is dedicated to improving housing accessibility by removing financial barriers for renters while protecting against the risk of bad debt. Learn more at About Esusu Esusu is a leading financial technology platform that empowers residents and transforms property performance by leveraging rental data. Its rent reporting platform captures rental payment data and reports it to credit bureaus, boosting renters' credit scores and helping property owners reduce evictions. Founded in 2018, Esusu reaches over 5 million rental units across all 50 states in the U.S. Learn more at and follow us on Instagram @myesusu and X @getesusu. View source version on Contacts Media Contacts: Julie Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
OneUnited Bank Teams Up with Esusu to Empower Renters, Unlock Better Credit and Open Doors to Homeownership
Two Impact-Driven Companies Collaborate to Provide Financial Wellness Tools for All BOSTON, April 9, 2025 /PRNewswire/ -- In recognition of Financial Literacy Month, OneUnited Bank, a leading Community Development Financial Institution and the nation's largest Black-owned bank, is joining forces with the innovative credit-building platform Esusu to revolutionize the path to homeownership for renters. By reporting on-time rental payments, this alliance simplifies credit building, paving the way to homeownership and delivering essential financial literacy tools and AI technology to help close the wealth gap. "This alliance is all about empowering renters with the financial tools they need to turn their homeownership dreams into reality," said Teri Williams, President & COO, OneUnited Bank. "For decades, our mission has been to promote financial empowerment for everyone, and this collaboration with Esusu is an important step in that direction." "Financial literacy is the key to achieving stability," noted Wemimo Abbey and Samir Goel, co-CEOs of Esusu. "This collaboration is all about equipping renters with the knowledge they need to navigate their journey to homeownership." To date, the Esusu platform has enabled over 200,000 renters to establish a credit score for the first time, while unlocking over $50 billion in credit activity. On average, renters see a positive credit score increase of 45 points, providing them access to better quality financial products and lower interest rates. "Recognizing rent payments as a valid form of credit building can truly change lives," added Williams. By enabling the reporting of rent payments to all three major credit bureaus, this initiative seeks to transform monthly rental costs into a pathway for increased mortgage eligibility. OneUnited Bank will make rent reporting available to all customers and Esusu will enable renters to access OneUnited Bank's AI-driven financial solutions through its app. This marks Esusu's first collaboration with a banking institution, showcasing the commitment of both organizations to empower underserved communities through cutting-edge, AI-driven financial solutions. For media inquiries, please contact: Suzan McDowell via email at 392958@ or phone at 305-576-3790. PRESS KIT About OneUnited Bank:OneUnited Bank, America's leading Community Development Financial Institution, the nation's largest Black-owned bank, eleven-time recipient of the US Department of Treasury's Bank Enterprise Award for community development and named Inc. Magazine's Best in Financial Services 2024. For more info, please visit About Esusu:Esusu is a leading financial technology platform that empowers residents and transforms property performance by leveraging rental data. Its rent reporting platform captures rental payment data and reports it to credit bureaus, boosting renters' credit scores and helping property owners reduce evictions. Founded in 2018, Esusu reaches over 5 million rental units across all 50 states in the U.S. Learn more at and follow us on Instagram @myesusu and Twitter @getesusu. View original content to download multimedia: SOURCE OneUnited Bank Sign in to access your portfolio
