Milvionne Chery Copeland, Writer
@milvionne_copeland
Yes, rent reporting can help your credit score. Payment history is the biggest factor in determining your credit score, so by reporting consistent, on-time rent payments to at least one of the credit bureaus, you can increase your credit score and show lenders you are capable of paying your bills on time.
How Rent Reporting Helps Your Credit Score
Rent reporting adds one of your biggest monthly expenses to your credit report, allowing you to turn that into a credit building opportunity. When on-time rent payments are added to your credit report, your credit score will get a boost from the positive information.
Your credit score can increase by up to 150 points when you report your rent payments, according to VantageScore, though the increase may vary. For example, Experian Boost reports that its users see an average increase of 13 points instantly, while Boom says its users see an average increase of 28 points in the first two weeks, with some scores increasing by 105 points.
A higher credit score may lead to:
- Higher approval odds for credit cards and loans
- Lower interest rates for credit cards and loans
- Increased chance of being approved for an apartment
- More job and dating prospects
On-time rent payments typically don’t influence your credit score since they are not reported to the credit bureaus, but using a service that reports your rent payments gives you the chance to add positive information to your credit report.
How to Report Rent to the Credit Bureaus
Since you cannot directly report your rent to the credit bureaus, you need to first see if your landlord is currently reporting your rent payments. If they are not, you can report your rent payments to the credit bureaus by signing up for a rent reporting service like WalletHub, Self, or Boom.
Once you are signed up, some companies may require you to sync the checking account that you use to pay rent. These companies will use your bank account to verify your rent payments and report them to the credit bureaus every month going forward. Other companies will verify your rent payments directly with your landlord.
To learn more, check out WalletHub’s guide on how to report rent payments to the credit bureaus and our picks for the best rent reporting services.
People also ask
How can I raise my credit score 100 points in 30 days?
You can raise your credit score 100 points in 30 days by disputing errors on your credit report, paying off past-due accounts, and lowering your credit utilization. Creditors typically report updated information monthly, so it is possible to improve your score by 100 points in 30 days. It will likely take several months for your score to realize its full potential, though.
You can use WalletHub’s free credit score simulator to learn how different actions can affect...
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