Rent payments are not always included in credit scores because they are not routinely reported to credit bureaus. However, rent is the largest monthly expense for many people. Approximately 25% of renters spend more than half of their income on rent, and nearly 50% spend more than 30% of their income on rent.
If you pay your rent on time each month, you could stand to gain from rent payment reporting, especially since 35% of your credit score is based on your payment history. If you’re looking for a way to boost your credit score or just want credit for making your rent payments on time, there are some options for reporting rent payments to the credit bureaus.
Check With Your Landlord
Your landlord already may report rent payments to the credit bureaus using a service that handles the process. RentBureau partners with Experian. Esusu and Zingo partner with Equifax. Zego reports to both Experian and TransUnion.
Timely rent payments will help boost your credit score if your landlord reports them, but late payments can have a negative impact on your score.
Credit bureaus don’t share information with each other, so rent payments reported through some services won’t necessarily appear on all three credit reports.
Use a Credit Card To Pay Your Rent
While your rent payments won’t be listed as a separate tradeline on your credit report, using your credit card for your rent still can boost your credit score. Check to see whether your landlord accepts credit card payments, and note any service fees that might be charged for using a credit card. If you’re using a rewards credit card to pay your rent, you can earn points or cash back on your rent payments.
When you use a credit card to pay your rent, make sure to pay off your full balance just as if you were paying rent. That’s the best way to stay out of debt, improve your credit score, and get the full benefit of making timely rent payments.
Use a Rent Reporting Service
There are several companies that will report rent payments on your behalf. Monthly fees vary between services, and some charge an initial enrollment fee to get started. In some cases, your landlord may have to verify your rent payments for them to be included in your credit report. Note that even when rent payments are included in your credit report, they may not be included in your credit score calculation.
- Rental Kharma: Adds up to six months of past rent payments to your credit report. The registration fee is $50, the monthly charge is $8.95, and you can add a spouse or roommate for a $25 one-time fee or add $5 monthly to your subscription. Your entire rental history at your current address is included, and there is no credit check for reporting your rent to TransUnion.
- Rent Reporters: Has a sign-up fee of $94.95 and charges $9.95 for monthly credit bureau reporting as of March 2022. You can also choose from an annual plan for the sign-up fee plus $7.95 per month. Once you sign up, Rent Reporters verifies your rental history with your landlord and then reports the tradeline to the credit bureaus. The service includes a copy of your credit score. Rent Reporters reports to TransUnion.
- Rock the Score: Verifies your rent payments with your landlord each month and updates your credit score with your payment information. You’ll pay $48 to enroll in the service and $6.95 each month for ongoing reporting as of March 2022. If you need a 24-month rental history, you can purchase a one-time report for $65. Rock the Score reports to TransUnion and Equifax.
Making Rent Payments
If you enroll in a rent reporting service, make sure you understand whether you’ll continue to pay your rent directly to your landlord or whether you’ll make payments to the service provider.
Pay your rent on time each month even when it’s not reported to the credit bureaus. Late payments can lead to an eviction that could ultimately land on your credit report through a collection or judgment. At that point, the late rent payments hurt your credit score rather than help it.
Frequently Asked Questions (FAQs)
Does not paying your rent affect your credit?
A missed rent payment only affects your credit report if your landlord reports your rent payments to the credit bureaus. To determine whether that's the case, you can get a free copy of your credit report from each bureau and see if information from your landlord shows up on any of the reports.
How much does rent affect my credit score?
There has been an effort in recent years to more consistently include rental data on consumer credit reports. Thus far, this has not been implemented consistently, and there has yet to be a significant impact from rent payments on consumer credit scores.
FAQs
By going through third-party reporting services, you can have your payments reported to the credit bureaus. Just be sure you understand the costs associated with these services and you make it a point to pay your rent on time, every time.
How do I report rent payments to a credit bureau? ›
By going through third-party reporting services, you can have your payments reported to the credit bureaus. Just be sure you understand the costs associated with these services and you make it a point to pay your rent on time, every time.
What are 3 situations in which the credit bureaus would have to provide you with an additional free report? ›
Those may include: You have been denied credit within the past 60 days based on information in your credit reports. You are unemployed and plan to seek employment within 60 days. You receive public assistance.
How do I report to a credit bureau? ›
How To Report Credit And Become A Data Furnisher
- U.S.A. (888) 407-0359. Canada. (800) 278-0278. ...
- U.S.A. (800) 831-5614 (Consumer Credit Reporting) U.S.A. (800) 478-0650 (Commercial Credit Reporting) ...
- Canada. (800) 565-2280. Contact TransUnion for reporting requirements and account minimums. Innovis.
If your rent qualifies, you can add your rent to Experian Boost by: Connecting your bank accounts or credit card that you use to pay rent to your Experian account. If you don't already have a free Experian account, signing up for Experian Boost will establish one for you.
Should I report my rent payments to the credit bureau? ›
If you pay your rent on time every month, reporting your rent to credit bureaus can be a safe way to add positive payment behavior to your credit report.
Why is rent not reported to credit bureaus? ›
Unless you or your landlord have signed up for a rent reporting service, the three major credit bureaus – Equifax, Experian and TransUnion – will not put rent payments on your credit report. That means your credit score and credit report aren't affected by your rent payments.
How do these 3 credit bureaus get their information? ›
Where do the credit reporting bureaus get their data? Creditors report how you handle accounts, including payment history. They're not required to report to the credit bureaus, but most do because data on how borrowers have handled credit cards and loans in the past helps them make lending decisions.
What are the three ways credit reports are used? ›
Employers may use your credit report, if you give them permission to do so, to decide whether to hire you. Telephone and utility companies may use information in your credit report to decide whether to provide services to you. Landlords may use the information to determine whether to rent an apartment to you.
What are the three main credit bureaus responses? ›
The three credit bureaus are TransUnion®, Experian® and Equifax®. Also known as credit reporting agencies (CRA), credit bureaus are businesses that gather data from creditors, lenders, and public records to create credit reports and credit scores.
California's Senate Bill 1157 went into effect July 1, 2021, and requires operators of subsidized multifamily units in the state of California to provide the option for tenants to have their rent payments reported to a major credit bureau.
What is unfair credit reporting? ›
A credit reporting agency failing to correct any errors or explain why the credit report is correct within 30 days of receiving a notice of dispute by the consumer. An entity pulls or checks your credit (“hard inquiry”) when you never authorized them to do so.
How do I add rent to Equifax? ›
By scanning your bank account,you are able to report payments made for rent to the three major credit reporting agencies—Equifax, TransUnion, and Experian. These payments are likely to appear on your credit report within just a few weeks,but may take longer in some cases.
What is a rent reporting service? ›
These services track users' rent-paying habits and report them to one or more of the big credit bureaus — Equifax, Experian and TransUnion — with the aim of helping renters build credit and potentially boost their credit score. But these services don't all operate the same way, and some may have less value for renters.
Is boom rent reporting legit? ›
If you're looking for an affordable rent reporting service, Boom is a great option. Plus, Boom claims their customers have seen their credit score increase by over 105 points, with an average increase of over 28 points in just 2 weeks. And for a small fee, you can split your payments into installments.
Does FICO 8 count rent payments? ›
While VantageScore 3.0 and FICO 9 use reported rent in their calculations, FICO 8 does not, even if those payments appear on your report.
What credit bureau do rental companies use? ›
Most landlords partner with one of the three major U.S. credit bureaus: TransUnion, Experian, or Equifax. These background checks will actually reveal much more about a prospective tenant than just their credit score; the goal is to discover any suspicious financial activity in the applicant's background.
Does paying utility bills build credit? ›
Paying noncredit bills like rent, utilities, and medical expenses on time won't bump up your credit score because they're usually not reported to credit bureaus. But if they're very late or in collections, they'll likely get reported and affect credit scores negatively.
