Usually, renting a house or an apartment doesn't show up on your credit report unless you miss a payment. If you skip out on paying rent, landlords will turn it over to collections who report that on the credit report. But what happens when you actually pay on time? Shouldn't you be rewarded on your credit report for paying rent?
There are services out there that allow you to connect your rent payment & report that to the credit agencies. I want to review the different options for you, because some claim to increase your score by 40 points on average. That impact could be huge if you're trying to buy a house.
If you missed last week's viral blog post, then check out how to raise your credit score by 100 points in 30 days or less.
1. Pay Your Rent
Pay Your Rent is a service that reports to all three major credit agencies, and if you already pay your rent through their interface, there is no charge for this service.
And according to their website:
Residents who pay their rent online through the PayYourRent portal can report on-time payments to all three major credit bureaus. As a resident, you can optin or opt-out of rent reporting at any time. Although individual results will vary, we have found that PayYourRent rent reporting has a substantial impact on your overall credit score within just a couple months of reporting. And the best part? It’s completely FREE to both residents and managers.
Pro's of Using Pay Your Rent
- Reports to Experian, Equifax and TransUnion
- No Extra Fees If You Pay Rent Through Their Portal
- Opt-in or Out at Anytime
Con's of Using Pay Your Rent
- Only available if your landlord uses PayYourRent's Portal
Related Article: Complete Guide to Debt Consolidation
2. Build Credit with Rent Track
Rent Track (RentTrack) can report every payment you make with your property manager so you can get credit automatically each money, just for paying rent.
And according to their website:
Your rental tradeline is used in different scoring models, such as FICO 9 score and VantageScore, and is also accepted by Fannie Mae and Freddie Mac for mortgage decisions.
Pro's of Using Rent Track
- Reports to Experian, Equifax and TransUnion
- No Extra Fees If You Pay Rent Through Their Portal
- Cancel anytime
Con's of Using Rent Track
- Only available if your landlord uses PayYourRent's Portal
3. Add Rent Using Rock the Score
Rock the Score verifies your rental history by contacting your landlord & verifying the lease and payment history.
And from their website:
We make this a very painless process that most Landlords and Property Managers are happy to participate. However if they are not supportive, then you don’t pay a penny. Our Rock Solid Promise is one click away.
Pro's of Using Rock the Score
- Reports to TransUnion
- No Extra Fees If You Pay Rent Through Their Portal
- Cancel anytime
- Money-back Guarantee if Landlord Doesn't Verify
Con's of Using Rock the Score
- Only available if your landlord uses Rock the Score's portal.
- Experian does not participate.
4. Add Rent Using Rent Reporters
Rent Reporters is one of the leaders in reporting rent. Most customers will see an initial boost of 35 to 50 points within 15 days.
From their website:
For thousands of RentReporters’ customers, the average increase they see in as little as 15 days is 35-50 points. We don’t run the credit scoring models owned and used by the credit bureaus, so we are unable to predict the change in your score. We do think you’ll be inspired by the stories of our customers and the dramatic changes they have experienced.
Pro's of Using Rent Reporters
- Reports to Equifax and TransUnion
- Charges $94.95 plus $9.95 per month
- Money Back Guarantee (48 hours of rent tradeline)
Con's of Using Rent Reporters
- If you cancel, they remove your rental history which could drop your score back down before you started with Rent Reporters.
- Your landlord must be willing to verify your rent. If they don't, you won't be able to signup with Rent Reporters.
- Refund Policy: you must cancel within 48 hours of the rent tradeline appearing on your credit report.
5. Add Rent Using Rental Kharma
Most of the rent-reporting platforms also functions as a rent portal where you can pay your rent & also report your rent to the credit agencies. Rental Kharma is not a payment platform. It relies on landlord reports to verify payment of rent; so this is especially useful if you don't live in a big corporate owned apartment complex.
Pro's of Using Rental Kharma
- Only reports to TransUnion
- Allows split payments to setup.
- $50 to join, $8.95 per month (payable in quarterly)
- Can add roommate or spouse for $25
- 91% average, great or excellent review with Trust Pilot
Con's of Using Rental Kharma
- Only available if your landlord uses PayYourRent's Portal
- Your landlord must verify your rent.
- Does not report to Equifax or Experian.
Related Articles: Fastest Way to Get a Credit Score of 800
Our Verdict: Should You Report Your Rent to the Credit Bureaus
If you have limited credit history and want to lengthen it, then reporting rent is one of the best ways to establish credit. If you have been using credit responsibly for 6 to 12 months, then reporting your rent is not likely to change your score.
Your credit score ranges from 300 to 850, and the higher the score – the better. What factors increase or decrease your credit score?
- Payment History
- Credit Utilization Ratio (Usage)
- Length of Time
- New Credit
- Credit Mixture (Cars, House, Gas Card, Retail Card, Bank Card)
Related Article: Factors that Affect Your Credit Score
List of Companies Who Report Your Rent:
