How to Add Rent to Your Credit Report?

For millions of Americans, rent is oftentimes one of the most significant recurring bills. Unfortunately, rent seldom counts toward credit history. Should you look to generate credit without essentially incurring debts, this addition to your credit report could be a real kicker.

Keeping within the credit limit and making regular payments on the lease can all work wonders on credit scores, thus giving one increased options in finance. This guide will show you how to report your rent payment to the bureau and how this activity can influence your credit score.

Rent Payments Help Build My Credit Score?

Unlike credit and loan payments, rent payments are rarely reported on by credit bureaus. They, however, may be submitted for third-party service reports, which may generate a credit history and improve a fair score for you.

Rent Reporting Details

Third-Party Rent Reporting Services: There are many companies that specialize in reporting rent payments to credit bureaus; such include:

• Experian RentBureau
• RentTrack
• LevelCredit
• Esusu
• Rental Kharma

Landlord Participation: Some landlords or property managers work with rent-reporting services to assist their tenants in building credit.

Self-Reporting: In instances where your landlord does not report rent, you might enroll with a rent-reporting service to apply rent payments against your credit profile.

Benefits of Adding Rent to Your Credit Report

1. It Strengthens Your Payment History
Payment history holds 35% of your FICO score. Reporting your rent payments allows them to work on your behalf in building your credit.

2. Better Yet, It Builds Credit Without Adding Debt
Counting your rent payments toward your credit adds an automatic credit-positive moment wherein debt is not incurred, thus seeming to those who may feel calm yet restrained from making debts.

3. Betterment for Thin Files
You can induce a thin credit bureau file into generating as well as building credit due to the availability of rent payments on your report.

First Step to Getting Your Rent Reported

Step 1: Find Out Whether Your Landlord Reports Rent Payment
Ask your landlord if he is already on a rent-reporting service. Find out just how many credit bureaus work on a report from there.

Step 2: Sign Up for a Rent Reporting Service
If your landlord doesn’t report rent, one should consider signing up for a third-party service that keeps the records of your rent payments. Certain services might offer free options, though landlord participation is necessary. Monthly subscription services entail regular fees. Always check accurately. Now that you are in rent reporting, monitor your credit report regularly to check if the payments are reported correctly.

Considered Cons:

Not All Credit Scores Considering Rent Payments
While VantageScore considers past rent payments in its score, rent payments are least considered by the FICO 8 (most widely used credit score model).

Service Fees
Some reporting services may also charge you certain fees to display your rent payment, which will wear you down after a certain time.

Landlord Participation
Some require for the rent to be reported to exactly check with the landlord before the report can be made.

Rent Reporting Keeps Credit Limits in Check for Credit Control

Establishes Responsibility
With a lender checking credit limits and payment history, within-credit-limits rent payments bolster your overall creditworthiness combination.

Strengthens Credit Mix
Credit mix also consists of installment loans, credit cards, and rent payments itself. Balanced credit reports reflect credit management responsibilities.

Lowered Likelihood of Delinquency
With payments within one’s ability, this will ensure payments are always on time, avoiding late fees and bad marks on the credit report.

Ultimate Thought

It’s a great way to establish or improve credit without incurring any debt—by inserting rent payments into your credit report. It’s nonetheless prudent to check the integrity of any reporting service prior to enrolling and keep abiding by due diligence on your credit. If you are within the credit limit and consistently pay rent in time—a recipe for a greater financial future!

Have you reported your rent payments before? Share your experience with us in the comments!