Everyone wants to improve their credit score, but is there any way to do that besides getting a loan? Yes! You can actually boost your credit score by paying rent online. One study found that participants who reported their rent payments to credit bureaus for six months improved their credit scores by an average of 16 points. And that was just the average!
You can boost your credit score by paying rent online, too. When you do so, your payments get reported to credit bureaus, you prove that you are a responsible bill-payer, and you can combine paying rent with paying off a credit card for an even greater boost. Keep reading to learn how.
Makes It Possible to Report Your Payments
If you pay your rent by check or cash, it doesn’t get reported to credit bureaus, so it doesn’t improve your credit. Reporting is key. “In some cases, paying your rent on time may help you build credit,” according to credit.com. “Each of the three major credit reporting agencies—Equifax, Experian and TransUnion—will include positive rent payment history on credit reports if they receive it.”
So how do you make sure your rent payments are reported? At Beachwood Apartments, we offer an online rental payment system that reports information to the credit bureaus. That way, credit bureaus receive a record of your on-time rental payments, which contributes to your good credit.
Makes You Look Good
When you think about your credit score, you likely think about paying off loans on time. But what else goes into that important number? For one example, Experian uses these elements to determine your score:
- Your use of credit cards
- Your history of payments
- Credit mix
So how do online rent payments fit in here? When you pay online and it gets reported to credit bureaus, those payments become part of your official payment history. In order to opt in for the credit reporting, follow these steps:
- Log in to your account through the resident portal and click on “Make a Payment Now.”
- Select “Build your credit history by opting in to credit reporting.”
- Enter your information in the credit reporting fields. Be sure to select “yes” for month-to-month lease if you have one, or select “no” and a lease end date.
As you continue to pay on time and in full, that is also recorded. Having a good mix of credit leads us to our next point.
Acts as a Launching Pad for Even Greater Gains
Have you ever gotten a credit card specifically to pay for one thing? If not, it might be time to try this technique out! The idea is that if you already have the money to pay for rent each month, you might as well use a credit card to pay rent and boost your credit score that way, too!
“Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month,” says LaToya Irby, credit expert for The Balance. “The timely credit card payments will help boost your credit score.”
This is just an option to consider; you can always pay with a debit card if you prefer. But if it makes sense for you, paying off your rent credit card can help boost your credit score in tangent with the boost that comes from paying your rent online.
Want to get started boosting your credit score? Head over to the resident portal! When you pay your rent online, your payments are reported to credit bureaus, which shows them what a responsible person you are. Then if you choose to pay rent with a credit card, you might boost your score even more. Give it a try!