How Paying Your Rent Can Boost Your Credit

How Paying Your Rent Can Boost Your Credit.  

Your Credit Can Benefit From On Time Rent Payments Paying your rent on time each month feels good and, of course, saves you the unnecessary expense of late fees. But what if on-time rental payments came with a benefit that went beyond boosting your self-esteem and bank account, and extended to your oh-so-hard-to-penetrate credit score?! Now, thanks to an innovative development from one of the major reporting agencies, paying your rent on time each month may rank at or near the top of your most promising credit repair strategies.  

How Can Paying My Rent On Time Help My Credit? In the past, only negative rental histories were reported to the three major credit reporting bureaus Experian, Trans-Union and Equifax. However, Experian recently changed the game, now calculating rental histories into its credit scores. So if you pay your rent on time, and that payment is reported as such by your property manager or landlord, your credit score benefits.

How Does Experian Collect Rental Histories? Experian acquired RentBureau, another credit reporting agency that reports specifically on the history of rental payments. These rental histories are now used in calculating Experian credit scores.  

Do All Property Managers and Landlords Report On-Time Payments to RentBureau? Unfortunately, no they don't. While there are more than 8 million renters listed in the RentBureau database, that represents just a fraction of renters nationwide. In fact, nearly 100 million Americans rent, leaving lots of room for the growth of this promising means of helping people improve their credit scores.

 How Do I Know If My Property Manager or Landlord Reports to RentBureau? Ask. And if they don't, point out that the benefits are threefold It's a great way to reward good tenants. It may help deter chronically-late paying renters who know their history will now affect at least one of their credit scores. It's a great way to gain access to a database of renters that can prove invaluable in weeding out prospective renters.  

What Are the Benefits For Property Managers and Landlords to Report to RentBureau? In addition to rewarding the dependable tenants who deserve credit for on time payments, property managers and landlords who report to RentBureau also reap the benefits of having access to its extensive database of renters. In other words, it's a great way for them to screen prospective renters.