There is a new way to build credit history for renters. You can now pay your rent through online payment services that are authorized to report your on-time payments to major credit bureaus. We have teamed up with RentTrack to offer you this additional service at no extra charge.
Rent payments show up like an auto loan (if you have a defined lease term), or like a charge card (when you pay month-to-month). You'll get a leg up against other applicants since your rental history will also show up on rental screening products offered by the bureaus. Finally, scores like Vantage are now incorporating rental payments in their models.
1 in 3 people in the US pay rent. That equates to 100 million people paying over $300B in rent annually with very few getting credit for their on-time payments. That makes rent the largest expenditure with the least impact on a consumer’s credit report.
Fortunately, major credit bureaus have started to record rent payments by teaming up with property managers and online rental payment services.
Rent payment reporting will have a significant impact for younger consumers with limited, or ‘thin’, credit history. These consumers can't get a credit card in just their name until they are 21, so rent reporting is a great way to get a jump start on building a solid credit profile.
So, while sending a rent check in the mail helps keep a roof over your head, it does not help establish your good reputation with anybody except your landlord. Start securing your financial future by using online rent payments services today so you can set it, forget it, and build credit history.VantageScore 3 is a product of Experian and TransUnion. Eligible rent payments can be reported to TransUnion and Experian RentBureau.