Maybe you have bad credit or no credit, or maybe your credit is okay, but it could be better. If you have been making full and timely rent payments, you might be thinking, “Great, I am on the right track. Just by keeping up with my rent, I am establishing and increasing my credit.”
The truth, however, is more complicated than that. It is possible to build and improve your credit by making rent payments. But if you have not proactively made sure that your rent is being reported to the credit bureaus, it almost certainly is not.
Thankfully, there is a fast and easy way to fix this problem, and that is to go through a rent reporting service.
In this post, we are going to tell you how to report rent to credit bureaus using a rent reporting service. But first, let’s explain why your rent payments might not be helping you build credit right now.
Why Your Rent Payments Aren’t Boosting Your Credit Score Yet
Hypothetically, if your landlord were so inclined, they could report your rent payments directly to the credit bureaus.
The reason your landlord does not take the trouble to do this is because they would have to pay a fee to provide the information to the bureaus.
They have nothing to gain from reporting your payments, and obviously do not want to spend money they do not need to. So, it is very rare for any landlord to voluntarily report rent.
Some landlords might be willing to do so upon your request, particularly if you are prepared to offset their fees. But most will turn you down outright if you ask.
How Much Could Reporting Your Rental Payments Increase Your Credit Score?
As it turns out, it is well worth your own time and effort to see to it that credit bureaus do receive reports of your rent payments.
The exact increase to your score will depend on your individual rent history. But it is typical to see a jump of as much as 40 points.
This increase can also be fast. If you use a rent reporting service, you could see your rent payments reflected in a higher credit score within just 10 days or so.
That can make a big difference if you are on a strict time schedule. Perhaps you are about to apply for a mortgage or another type of financing. Your higher score could help you qualify for more competitive interest rates. That brings us to our next section.
What are the Benefits of Reporting Rent Payments?
No credit? That is not a problem so long as you are paying rent each month and want to report it. This is an excellent way to start establishing your initial credit since there is nothing you have to qualify for in order to begin.
Bad credit? Again, that is not a problem. Your current score will not stand in the way of participating in rent reporting.
Qualify for more financing products. As you increase your credit score through rent reporting, you should find it easier to qualify for loans, lines of credit, etc.
Qualify for lower interest rates and better terms. Not only will you qualify for more products, but you will also likely qualify for better products with your higher score.
Lower insurance costs. Did you know that insurance rates are often lower for customers with higher credit scores? That is yet another way in which rent reporting can help you out financially.
Increase card limits. If you want a higher limit on your credit card, higher credit may help you get it. Try boosting your score with rent reporting, and then contact your card provider to request an increase.
Rent an apartment more easily. You are already paying rent, but perhaps you want to upgrade to something nicer. You are more likely to be approved with higher credit.
Improve job candidacy. Employers check credit when they are screening candidates. If you have higher credit, you may appear more trustworthy and reliable, making you more employable.
Get utilities. Creditworthy applicants are more likely to receive approval for a range of utilities.
Avoid security deposits. If you have a low credit score, you are more likely going to be forced to put down security deposits when you rent something or open a utilities account. If you are having a hard time affording security deposits, boosting your credit score with rent reporting might help you get around them.
Most importantly, reporting rent payments to the credit bureaus can help you get around the big catch-22 with credit: If you don’t have good credit, it is hard to qualify for the products that help you build credit.
Once you have established credit or improved your credit with rent reporting, you can apply more easily for other products that will help you continue to increase your credit. So, consider rent reporting a leg up in your credit development journey.
How You Can Start Building Credit by Paying Your Rent
Now that you know why it is worth your time to report rent payments to credit bureaus, let’s explain how to use rental reporting services.
1. Sign up for a rent reporting service.
The first step is simply to sign up for a rent reporting service. The signup process is fast and easy. You just need to provide enough basic personal details that the service can take the next steps. You will also need to provide contact information for your landlord.
There is a fee for using a rent reporting service. But this modest fee can be well worth it if it ends up saving you substantially more money by helping you qualify for a lower interest rate on a loan application (or whatever else you are trying to accomplish with a higher credit score).
The service we recommend is Rent Reporters. When you sign up, you will be able to choose between a monthly plan and an annual plan.
The features are the same for both. The only difference is that with the annual plan, you are billed once a year instead of once a month, and you receive a discount for paying for a whole year at a time.
2. Wait for the rent reporting service to verify your history.
The next three steps are completely passive. You do not have to do anything. The rent reporting service will do all the work.
As you wait, your rent reporting service will contact your landlord. The landlord will then be able to verify your history of rent payments.
If you want to speed this process along, it is recommended that you contact your landlord yourself to alert them that the rent reporting service will soon be in touch.
3. The rental reporting service reports your rent payments to the credit bureaus.
Once the reporting service has verified the payments, they will report them to one or more credit bureaus. Rent Reporters reports to both Equifax and TransUnion.
If you order your credit report, you can verify the rent reports for yourself. Just look for “RR/Residence.”
The initial boost to your score will take place when the bureaus receive the first report. Again, this can be within just 10 days if you go through Rent Reporters. But if you have subscribed to ongoing service, the bureaus will continue to receive reports of your subsequent payments.
That means if you keep making full and on-time payments of your rent, you can continue to improve your score.
That’s it! Continue to use rent reporting services for as long as you need them to improve or maintain your score.
Why Choose Rent Reporters?
When you choose Rent Reporters to submit your rental history report to the credit bureaus, here are the features you can look forward to:
Free Credit Score
Personal Credit Specialist
24 Months of Rent History
Expert Financial Literacy Resources
Expedited Reporting With RentCheck
If you purchase the annual plan, you also can take advantage of VIP Expedited Reporting, which takes just 3-5 days.
If you are on the fence about giving rent reporting a try, you’ll be glad to know that Rent Reporters has your back with a 7-day money back guarantee.
Something else we love about Rent Reporters is that they can report your rent payments to the bureau even if you are not officially named on a lease.
So, if you sub-lease from a friend, for example, you can still participate. This is a big help, because a lot of people who do sub-lease are very much in the economic strata that can benefit the most from a program like this.
Last but not least, we recommend Rent Reporters because they have excellent reviews. Customers emphasize how quick and easy the process is, and how in some cases, it was the boost they needed to change their lives and achieve their goals.
Boost Your Credit Score Now With Rent Reports
Now you know how to report rent to credit bureaus with the help of rent reporting services. You also know some reasons why Rent Reporters is our top recommended service for getting the bureaus up to speed with your timely and full rental payments.
In just 10 days, you could see a significant boost to your credit score. You are just a few minutes away from completing the signup process. To take the next steps, click the link below to register with Rent Reporters and increase your credit score now.