Did you know that over half of Americans have been rejected due to poor credit? Further, 53 percent of millennials don’t even know what their credit score is. If you are wanting to improve your credit score, there is light at the end of the tunnel! That light is paying your rent online.
According to one study, 12,000 renters who reported their rent payments to credit bureaus for six months experienced a credit score average of 16 points, with the greatest benefit being for those who started with a score lower than 620.
If you want to experience the same benefits, pay your rent online. Doing so ensures your payments are reported, provides credit bureaus with information, and can combine with credit card payments to increase your score even more.
Ensures Your Payments Are Reported
“Reporting your rent payments can help you build credit—especially if you are new to credit or do not have a lot of experience using it,” says Bev O’Shea at NerdWallet.
So how do you make sure your rent payments are reported? At Stadium House Apartments, we provide our residents with an online rental payment system that reports information to the credit bureaus. Credit bureaus receive a record of our residents’ on-time rental payments, which contributes to their good credit. 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.
Provides Credit Bureaus with Information
Understanding what actually goes into a credit score and why paying rent online improves your score can be confusing! Below are some of the following elements that credit bureaus track:
- Payment history
- Use of credit cards
- Applications for new loans and credit
- Number of accounts
As you pay your rent online and on time, your payments become part of your history, which then becomes part of your credit score, too.
Results in Higher Score Gains When Combined with Credit Cards
Add an extra boost to your score by paying with a credit card. While there are many ways to pay rent online, paying with a credit card, combined with paying on time, improves your credit score even more.
Pay your rent online through the resident portal so that your payments are reported to credit bureaus. Add an extra boost by paying with a credit card, and you’ll be amazed at the results!