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
Unfortunately, rent payments are not automatically factored into your credit score. That means, for many people, their largest monthly expense doesn't help build credit. You can make sure your on-time rent payments are being reported to credit bureaus through rent reporting services.
How do I report payments to the credit bureau? ›
If you have an account that isn't listed on your credit report, you can contact the lender and request that they report your account and payment activity to the credit bureaus. Keep in mind that not all creditors report to all three bureaus. So, each of your three credit reports could contain different information.
How to report utility payments to credit bureaus? ›
You can use a service like Experian Boost to include utilities bills in your payment history. If you have long-overdue bills, a utility company can send your account to a collection agency that can forward it to one or more of the credit bureaus.
Is it good to report rent to a credit bureau? ›
Rent reporting is a great option for students or those seeking to establish their credit history, as an alternative to taking on loans or lines of credit that might encourage additional spending.
How do I add my rent payments to my credit score? ›
You can also use a private rent reporting service to have payments added to your credit reports with all three credit bureaus: Experian, TransUnion and Equifax. You may need to ask your landlord to enroll with one of these services to report your information if they don't use a service already.
Can I report my rent payments to Experian? ›
You may also be able to add your rent payment to your Experian credit report with Experian Boost®ø. If you pay your rent online to an eligible landlord for a qualifying amount, consider adding it to Experian Boost.
What bills report to credit bureau? ›
Some other monthly bills that, if paid on time and reported to the credit bureaus, could help you build credit include: Credit card payments, including secured credit cards and student credit cards. Installment loans like student loans and auto loans. Mortgages.
How do I report a past due bill to the credit bureau? ›
Contact the vendor in writing. Mention the late payments, failure to pay and amount of time which has elapsed since payment was due. Inform the vendor that the late payments will be reported to all three credit bureaus if payment is not received within 60 days of the initial due date.
How to add rental history to credit report for free? ›
Experian Boost: This free service allows you to add rent payments, as well as utility payments and streaming subscriptions, to your Experian credit report by linking your bank account. Piñata: Renters can download the free app and get their rent payments reported to TransUnion at no additional charge.
What app reports utilities to credit bureaus? ›
One example is Experian Boost, which is a free app that helps build your Experian credit score by getting you credit for paying your cell phone and utility bills, your rent, and your insurance premiums. This app lets you connect applicable bills you pay regularly so they can be reported to the credit bureaus.
How to remove negative items from your credit report yourself
- Get a free copy of your credit report. ...
- File a dispute with the credit reporting agency. ...
- File a dispute directly with the creditor. ...
- Review the claim results. ...
- Hire a credit repair service. ...
- Send a request for “goodwill deletion” ...
- Work with a credit counseling agency.
Does paying rent build credit? Simply paying your rent will not help you build credit. But reporting your rent payments can help you build credit — especially if you are new to credit or do not have a lot of experience using it.
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.
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.
How to build credit with utility bills? ›
Utility companies typically don't report your payment history to the credit bureaus. But paying utility bills on time can help your credit score when you use Experian Boost. This tool specifically integrates gas, electric, water and other utility payments into your Experian credit report and scores.
Do late rent payments show up on credit report? ›
Overdue rent might appear on your credit reports if the landlord sends the debt to a collection agency. The agency might report the collection account to the credit bureaus. Also, if an eviction appears in the public record, the credit reporting agencies will likely include it on your credit reports.
How can I add my rental history to my credit report for free? ›
Experian Boost: This free service allows you to add rent payments, as well as utility payments and streaming subscriptions, to your Experian credit report by linking your bank account. Piñata: Renters can download the free app and get their rent payments reported to TransUnion at no additional charge.
Can you claim rent on credit report? ›
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 I add payment history to my credit report? ›
Ask the CRA to add the information.
Send a copy of a recent account statement and copies of canceled checks (never originals) or other proof of payment showing your payment history. Then, ask the credit reporting agencies to add the information to your file.
