For many apartment renters, rent payments are the biggest expense each month. So, it’s a good idea to make sure your rent goes toward your credit score.
How do you do this? There are a few things you must do to make sure your rent is counted toward increasing your credit. First, you must pay your rent online. Next, ensure your payments are reported through a reporting agency. Finally, be sure to pay with a credit card to boost your score even further.
Pay Rent Online
According to Experian, a credit score is determined by payment history, the use of credit cards, and applications for new credit and loans. Paying rent online ensures that your payments are recognized in your payment history so they can be factored into your credit score.
Report Rent Payments
Once you have paid your rent online, you must make sure your payments are recognized by the credit bureaus and calculated into your report. According to RentTrack, “It’s not possible to report information directly to the big three credit bureaus: TransUnion, Experian and Equifax.” Using a reporting agency such as RentTrack will make sure your payment is seen by credit bureaus.
Use Your Credit Card
Make sure you are paying with a credit card to build your credit even more. Paying rent online with your credit card is the optimal combination to improve your credit score quickly.
LaToya Irby, credit expert for The Balance, advises, “Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month. The timely credit card payments will help boost your credit score.”
You don’t have to pay your rent with a credit card, but it can be a nice little boost to your credit score in combination with the benefits of paying your rent online.
As you pay rent online with a credit card and make sure the rent gets reported to credit bureaus, you will see your credit score soar.