Did you know your rent payment can boost your credit score? According to a study of 12,000 renters by TransUnion, people who report their rent to credit bureaus improve their credit scores in as little as 12 months. Scores rose by an average of 16 points for people who reported their rent payments.
If you want to improve your credit score, try paying rent online. When you do so, the service reports your payments, and credit bureaus can get the information they need. You can even further increase your score by using a credit card. Here’s how it works.
Reporting Your Rent Payment
Simply paying rent, or even paying rent online, won’t improve your credit score, says Bev O’Shea at NerdWallet. If you want your on-time rent payments to improve your credit score, you must use a service that reports your payments.
At Stadium House Apartments, our online rent payment system reports straight to the credit bureaus. So you don’t have to worry about how to report your on-time rent payments, which helps improve your credit score.
Showing Credit Bureaus What They Need
Do you know what goes into your credit score? According to NerdWallet, there are several factors, including the following:
- How long you’ve had credit
- The kinds of credit you have (i.e., loans and credit cards)
- Debt and total balances
- How long it’s been since you last applied for credit
The biggest contributing factors, though, are credit utilization—the portion you use of your credit limit—and your payment history. So using a service that allows you to pay rent online and report those on-time payments to credit bureaus will improve your score.
Using a Credit Card
“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.”
So think about paying your rent online with a credit card that you exclusively use for your rent payment every month. When you pay your rent on time and online with a credit card that you pay in full every month, you may boost your score even more.
Try paying your rent online through our resident portal and see how it improves your credit score. The system will report your rent payments, and you’ll show credit bureaus what they need. If you want to enhance your score further, try paying with a credit card. Good luck with boosting your score!