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Reporting rent to the credit bureaus can help you build credit and improve your credit score. If you pay your rent on time and in full regularly, consider taking steps to add it to your credit reports.
Rent payments aren't typically reported on your credit report as your credit card, loan and other debt payments are, but some services are making it possible. Here's what you need to know.
Does Paying Rent Build Credit?
If rent payments appear on your credit report, they can help you build credit. However, fewer than 5% of tenants' rent payments are reported to the credit bureaus, according to a survey conducted by the Urban Institute. If your landlord doesn't use a rent reporting service, you may need to take extra steps to use your rent payments to build credit.
The good news is there are other services you can use to add your positive payment history to one or more of your credit reports. Experian Boost®ø is just one example, allowing you to report rent and other non-debt payments to your Experian credit file—more on that and other options in a minute.
How Rent Payments Affect Your Credit Score
Your payment history is the most important factor in determining your FICO® Score☉ , the score used by 90% of top lenders, so having rent payments reported to the credit bureaus can have a significant positive impact on your credit profile.
If you're new to credit, for instance, reporting your rent payments can help you establish a credit report and, eventually, a credit score. If you already have a credit history but have had some difficulties in the past, the addition of on-time rental payments can help your credit recover more quickly.
Even if you have an established good credit history, incorporating on-time rental payments into your credit reports can demonstrate to lenders that you're able to manage financial obligations. Depending on the credit scoring system used, your on-time payments may be included in the calculation.
In some cases, though, late and missed rent payments can be reported to the credit bureaus, or a landlord may send unpaid rent to a collection agency, which will report it as a collection account. In both of these cases, your credit score could take a hit.
Learn more >> Can Late Rent Payments Hurt My Credit Score?
How to Report Rent to the Credit Bureaus
Experian makes it easy to add your rent data to your Experian credit report for free. Below are ways to report your rent to credit bureaus.
Experian Boost
Experian Boost offers one of the easiest ways to add your rent payments, along with utility, phone, insurance and even some streaming subscription payments, to your Experian credit file.
You may be eligible to use the free feature for rent payments if the following are true:
- You pay online to an eligible landlord or property manager or through a rent payment platform.
- You've made at least three residential rent payments within six months, with one in the past three months.
- Your rent payments reach the qualifying amount.
If your rent payments qualify, you can add your rent to Experian Boost by taking the following steps:
- Register for an Experian account if you don't already have one, or sign in to your existing account.
- Connect the account you use to pay rent to your Experian account.
- Allow Experian Boost to search for eligible payment information and verify the rental payments.
- After allowing Experian to add the payments to your credit report, check to see if your score was boosted.
Learn more >> Does Experian Boost Work?
Other Services
You can also use a private rent reporting service to have payments added to your credit reports with all three credit bureaus: Experian, TransUnion and Equifax. You may need to ask your landlord to enroll with one of these services to report your information if they don't use a service already.
Rent reporting services make it simple for property managers or landlords to report rent directly to one or more credit bureaus. If you need to choose a rent reporting service, consider these factors:
- Fees: There may be small fees associated with reporting, which you may be responsible for paying. Try to stick to free services to avoid unnecessary costs.
- Eligibility: Your apartment building may not be eligible for all rent reporting services. Check to see which ones are compatible with your location and property management.
- Bureau report options: Some rent reporting services send your rental data to only one or two of the three major credit bureaus. Try to find the best combination of reporting combined with the best price.
- Back reporting: Some services allow you to add previous payments to your credit reports, while others will only add payments starting from when you register.
Additional Ways to Build Credit
Reporting rent payments can be a great way to improve your credit score, but if you want to be more effective with your credit-building efforts, here are some other ways you can accomplish your goal.
Become an Authorized User
If you have a family member or friend who uses their credit cards responsibly, consider asking them to add you as an authorized user.
Once you've been added, the full history of the account will be reported to the credit bureaus. Just be sure to monitor your credit report to ensure that they continue to pay on time and maintain a low credit utilization rate.
Use a Credit Card of Your Own
If you can get a credit card on your own, make it a priority to always pay your monthly bill on time and maintain a low balance relative to your credit limit. This can help you improve your credit over time, along with your other efforts.
Learn more >> How to Use Credit Cards to Build Credit
Review Your Credit Reports
If you have an established credit history that you'd like to improve, get a free copy of your Experian credit report to get an idea of which areas you can address. You can also get free weekly copies of your credit reports from all three bureaus through AnnualCreditReport.com.
If you find inaccurate information on any of your credit reports, you have the right to file a dispute with the credit reporting agencies.
Learn more >> What to Look for When You Review Your Credit Report
Continue to Monitor Your Credit Score
Once you've added rent payments to your credit reports, it's important to continue to monitor your credit to understand how your actions impact your score and to address potential issues as they arise.
With Experian's free credit monitoring service, you'll get real-time alerts when changes are made to your Experian credit report, making it easier to track your progress and make adjustments to your credit habits as needed.
