Does Rent-A-Center Build Credit?

No, Rent-A-Center will not help you build credit because the company’s pay-to-own model does not require a credit check or involve borrowing money. Rent-A-Center customers rent items with an option to purchase, and on-time payments will not be listed on customers’ credit reports.

It’s understandable if you’re surprised about this, considering that Rent-A-Center technically does extend credit to its customers. After all, receiving goods without paying for them in full up front, which Rent-A-Center allows its patrons to do, is similar to leasing a car, which would impact your credit. But we called to confirm, and indeed Rent-A-Center will not be an ally in your fight for a better credit score.

Rent-A-Center and Your Credit

Rent-A-Center can impact your credit standing only negatively. If you don’t make the payments for your Rent-A-Center goods, your merchandise will likely be repossessed and your account will be sent to collections. Collections accounts are listed as derogatory marks on your credit report and damage your credit score considerably. You could also face legal action.

Tips for Building Your Credit

If you’re interested in building credit, you’ll want to open a credit card, preferably a no-annual-fee card, even if it’s secured, as account information is relayed to the major credit bureaus each month, even if you only maintain a $0 balance.

You can track your progress by signing up for a free WalletHub account. WalletHub offers free credit scores and full credit reports updated daily.