Your Rent Payments Can Help Raise Your Credit Score!

Here at MoneyFor, our goal is to help you make informed financial decisions. We are committed to accuracy and impartiality in all our content. It’s important to note that articles may reference products from our partners who compensate us. This influences which products we feature and their presentation on our site, not our evaluation.

Key takeaways

Rent payments can improve your score when reported to major credit bureaus, especially if you’re new or rebuilding credit.
You will need to use a third-party company to report rent payments.
Companies often charge fees, but some landlords may participate for free or offer complimentary reporting.

Millions of Americans pay rent every month, but most don’t get credit for it. Rent payments are not typically reported to the credit bureaus, and so do not appear on credit reports. For renters who are struggling with a low score or no credit history at all, this is incredibly frustrating. The good news is that it’s now possible to build credit by paying rent, thanks to rent reporting services.

Rent reporting services ensure that your payments appear on your credit report. On-time payments can improve your payment history and boost your score. The higher your score, the more borrowing options you’ll have.

The best services charge a fee, but the benefits may be worth the extra cost. Here’s what you need to know about reporting rent to build credit.

Does paying rent build credit?

Rent payments are not traditionally reported to the credit bureaus since they are not a form of borrowing. Institutions usually only report activity from cards and loans. That said, rent can still affect your score.

Credit bureaus will include rent information on your credit report if they receive it. It makes sense to add it, since paying rent on time is a good indicator that you’ll pay other bills on time.

Landlords and property managers can report your monthly rent payments on their own. Many do not take this extra step. But you can get your payments recorded when you use a rent-reporting service.

What are rent reporting services?

Rent reporting services are third-party companies that send information about your rent payments to the major credit bureaus. The bureaus then put the data on your credit reports.

Adding timely rent payments to your reports increases your positive payment history. Payment history is the most significant credit scoring factor, making up 35% of your FICO score. Adding to it can significantly bump up your score with minimal effort.

Many of these services charge fees, though a few are free. You may be able to sign up for one on your own. Or you may need your landlord’s participation. It depends on the company.

Anyone can get a credit card!

Check out 10 tips to boost your application.

Which credit scores do rent payments affect?

Rent reporting services will get your payments on your credit report, but they won’t always affect your score. You have multiple credit scores from each of the major bureaus – Experian, Equifax, and TransUnion – and credit scoring models. The main scoring models are FICO (used by 90% of lenders) and VantageScore.

Newer versions of FICO (FICO Score 9 and 10) and VantageScore 3 and 4 take rent payments into account. If your lender pulls any of these scores, they will see an improved number thanks to your on-time payments.

FICO Score 8 – a commonly used score – does not include rental payments when calculating the number. Nor do the FICO scores commonly pulled for mortgage applications or auto loans.

It is frustrating that many credit scores do not include this information. The good news is that while the numbers won’t reflect your rent payments, lenders will look at the data on your reports as well. They will see a history of on-time payments every month, and this will reflect positively on you.

How to enroll in a rent reporting service

Anyone can enroll in a rent reporting service, but you may need your landlord’s cooperation. You also need to double-check that the service will be worth the fees.

Talk to your landlord

Start by talking to your landlord or property manager. Ask if they already work with any rent-reporting services. Some property owners may already have a connection with a service, making the process easier. They may even be willing to report rent themselves.

Suppose they don’t. In this case, discuss the possibility of enrolling them in a program. Depending on the service you choose, your landlord may need to create an account or take the time to respond to monthly requests. Make sure that they are willing to participate

Research different companies

Look into various services available. Consider factors such as cost, reputation, and ease of use.

Questions you should ask before signing up:

Can I cancel at any time?
Do you report payments to all three credit bureaus? (Use a service that reports to all three as you never know where a lender will pull your score from.)
What happens if I’m late or miss a payment?
Will you retroactively report on-time rent payments? (Some services will report up to two years of rental history)
Do I need to pay rent through the service or directly to my landlord?
How much does the service cost? (There may be an initial set-up fee and monthly charge)
How do you verify rent payments? (Some will verify payments with the landlord, while others will check your bank account.)

Sign up for a rent reporting service

Once you’ve chosen a company, sign up. Some services allow you to report past payments for up to two years. If you have this option, take it. Retroactive reporting will give your score an immediate boost.

You may need to pay through the service rather than directly to your landlord. If this is the case, ensure your landlord is set up to receive payments. Then, confirm that they got paid so there is no misunderstanding.

Check your credit reports and scores

After you make your first payment with the service, wait 30 days. Then, check your credit reports to verify that the payment is now listed. As more payments are reported, your score will grow.

When is it reporting rent worth it?

Rent reporting is a good idea if you always pay on time. It is an easy way to add positive payment behavior to your report. Reporting positive rent payments is especially helpful for anyone seeking to establish their credit history or rebuild their score. The lower your score, the bigger the boost it will give. Some people prefer rent reporting to taking on a loan or credit card that may encourage additional spending.

If you already have a strong credit score, adding monthly bills to your payment history won’t help too much. In this case, you should continue to make on-time payments and keep your credit utilization low – below 30% of your limit.

Before you decide to engage a service, make sure that it is affordable. Adding monthly bills to your reports won’t help if you can’t afford the fees. If the fees are too high, consider alternative ways to make a positive impact on your score, like being added as an authorized user or taking out a credit builder loan.

Did your score suddenly drop?

Find out why and what you can do about it.

Do missed rent payments hurt your score?

Missed payments typically do not appear on your credit report, but it all depends. Most landlords and property managers will not report them. Check your rental agreement, ask your landlord, and find out the rent reporting service’s policy.

If your rent is exceptionally late, your landlord may sell it to a debt collection agency. The collection agency will report the overdue bill to the credit bureaus. At this point, it will appear as a negative mark on your report, damaging your score. The best thing you can do is pay the bill as soon as possible.

Frequently asked questions

1. How can you add rent payments to your credit report?

You can add payments to your report using a rent reporting service. These services report your rental payment history directly to major credit bureaus. Reporting monthly payments helps you build a positive payment history.

2. Does paying utilities or phone bills build credit?

Paying bills can build credit when payments are reported to the bureaus. Some rent reporting services allow you to add utility payments, phone bills, subscriptions, and other monthly bills to your credit file. Adding these payments can further boost your score.

3. Are there free rent reporting services?

The cost of rent reporting services varies widely—a few offer free options, but most charge an one-time fee followed by a monthly fee.

4. Do I need my landlord’s approval to report rent payments?

In most cases, you don’t need your landlord’s approval to report rent payments. Many services allow tenants to enroll independently and verify payments by examining their checking accounts. Others do require the landlord’s cooperation to confirm payments.

5. Can I rent an apartment with poor score or no credit history?

It depends on the landlord. Some landlords do not check credit. If your landlord does consider your score, he may require additional steps. You may need to put down a larger security deposit, find a co-signer, or show proof of stable income to be approved.

Bottom line

You can build credit by paying rent, but it is not the most effective way to boost your score. Rent reporting works best for consumers with little to no credit history. In this case, every little bit of positive payment information will give your score a boost. A history of on-time rent payments (and other monthly bills) is valuable date for potential lenders and, of course, future landlords.

Other credit-building strategies are more efficient since they influence all credit scores and are reported to all three credit bureaus. You can take out a credit builder loan. Loan payments are reported, and you get the money once it’s paid off. Apply for a secured credit card, which is easier to be approved for due to the security deposit. Or become an authorized user on someone else’s card and benefit from their good score. All three will help you establish a positive payment history.

When you need to build credit, know you have plenty of options. It takes time, but your score is constantly updated with new information. Pay your bills on time and won’t be stuck with a low rating for too long.

1. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions. Current is a financial technology company, not an FDIC-insured bank. FDIC insurance up to $250,000 only covers the failure of an FDIC-insured bank. Certain conditions must be satisfied for pass-through deposit insurance coverage to apply. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card issued by Choice Financial Group, and the Current Visa® secured charge card issued by Cross River Bank, are both pursuant to licenses from Visa U.S.A. Inc. and may be used everywhere Visa debit or credit cards are accepted. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

2. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group, Member FDIC, and Cross River Bank, Member FDIC. The Current Visa® Debit Card is issued by Choice Financial Group pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. The Current Visa® secured charge card is issued by Cross River Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank. Current Individual Account required to apply for the Current Visa® secured charge card. Independent approval required.

3. Individual results may vary. Using your credit card responsibly may allow you to improve your credit score. Credit building depends on various factors, including your payment history, credit utilization, length of credit history, and other financial activities.

4. Faster access to funds is based on comparison of traditional banking policies and deposit of paper checks from employers and government agencies versus deposits made electronically. Direct deposit and earlier availability of funds is subject to timing of payer’s submission of deposits.

5. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Funds held in Savings Pods are FDIC-insured on a pass-through basis up to $250,000 at our partner bank Choice Financial Group, member FDIC

6. Paycheck Advance is For eligible customers only. Your actual available Paycheck Advance amount will be displayed to you in the mobile app and may change from time to time. Conditions and eligibility may vary and are subject to change at any time, at the sole discretion of Finco Advance LLC, which offers this optional feature. Finco Advance LLC is a financial technology company, not a bank. Expedited disbursement of your Paycheck Advance is an optional feature that is subject to an Instant Access Fee and may not be available to all users. Expedited disbursements may take up to an hour. For more information, please refer to Paycheck Advance Terms and Conditions.

7. Actual overdraft amount may vary and is subject to change at any time, at Current’s sole discretion. In order to qualify and enroll in the Fee-Free Overdraft feature, you must receive $500 or more in Qualifying Deposits into your Current Account over the preceding 30-day period. For more information, please refer to Fee-free Overdraft Terms and Conditions.

8. You may earn Points in connection with your everyday spending and by completing other actions that Current designates as subject to the Current Points Program. The amount of Points granted for different actions as well as the purchase requirements necessary to earn Points will vary, and is subject to Current’s sole discretion. After qualifying, please allow 3-5 business days for points to post to your Current account. The Current Points program is not available to Teen Account holders. See Current Points Terms and Conditions.

9. Some fees may apply, including out of network ATM fees of $2.50 per transaction, late payment fees of 3% of any total due balance outstanding and past due for two or more billing cycles, foreign transaction fees of 3% of the full transaction amount (minimum $0.50), card replacement fees per card of $5 for regular delivery and $30 for expedited delivery, cash deposit fees of $3.50 per deposit, and third party processing fees.

10. Boost Bonuses are credited to your Savings Pods within 48 hours of enabling the Boost feature and on a daily basis thereafter, provided that the Savings Pod has accrued a Boost Bonus of at least $0.01. The Boost rate on Savings Pods is variable and may change at any time. The disclosed rate is effective as of August 1, 2023. Must have $0.01 in Savings Pods to earn a Boost rate of either 0.25% or 4.00% annually on the portion of balances up to $2000 per Savings Pod, up to $6000 total. The remaining balance earns 0.00%. A qualifying direct deposit of $200 or more is required for 4.00%. No minimum balance required. For more information, please refer to Current Boost Terms and Conditions.

11. Cryptocurrency services are powered by Zero Hash LLC and Zero Hash Liquidity Services LLC, and may not be available in all states. Terms and conditions apply. When you buy or sell cryptocurrency, a difference between the current market price and the price you buy or sell that asset for is called a spread. However, unlike most other exchanges Current does not charge an additional trading fee. Cryptocurrency transactions are a form of investment, and all investments are subject to investment risks, including possible loss of the principal amount invested. Cryptocurrency is not insured by the FDIC or any other government-backed or third-party insurance. Your purchase of cryptocurrency is not a deposit or other obligation of, or guaranteed by, Choice Financial Group or Cross River Bank. The cryptocurrency assets in your Zero Hash account are not held at Current, Choice Financial Group, or Cross River Bank. Current, Choice Financial Group, and Cross River Bank are not responsible for the cryptocurrency assets held in any Zero Hash account. Neither Current, Choice, nor Cross River Bank is involved in the purchase, sale, exchange of fiat funds for cryptocurrency, or custody of the cryptocurrencies. Terms and Conditions apply (platform and user agreements). Crypto on Current is not currently available in HI. Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. This does not constitute investment advice.

12. Current is a financial technology company, not a bank. Banking services provided by Choice Financial Group. Your money is FDIC-insured on a pass-through basis up to $250,000 at each of our partner banks, Choice Financial Group and Cross River Bank, members FDIC.

13. Average value based on Fine Hotels + Resorts bookings in 2023 for stays of two nights. Benefits include daily breakfast for two, room upgrade upon arrival when available, $100 amenity, guaranteed 4PM late checkout, and noon check-in when available. Certain room categories not eligible for upgrade. $100 amenity varies by property. Actual value will vary based on property, room rate, upgrade availability, and use of benefits.

14. Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

15. The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

16. Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g. plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one- way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

17. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

18. Coverage for a Stolen or damaged Eligible Cellular Wireless Telephone is subject to the terms, conditions, exclusions, and limits of liability of this benefit. The maximum liability is $800, per claim, per Eligible Card Account. Each claim is subject to a $50 deductible. Coverage is limited to two (2) claims per Eligible Card Account per 12 month period. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

19. When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

20. Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited to up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply. Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

21. Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

22. The secured Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

23. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted.

24. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is effective as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

25. There’s no fee for the Chime Savings Account. Cash withdrawal and Third-party fees may apply to Chime Checking Accounts. You must have a Chime Checking Account to open a Chime Savings Account.

26. To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

27. Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

28. Based on a representative study conducted by Experian®, members who made their first purchase with Credit Builder between June 2020 and October 2020 observed an average FICO® Score 8 increase of 30 points after approximately 8 months. On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score.

29. On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

30. Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.

31. SpotMe® on Debit is an optional, no fee overdraft service attached to your Chime Checking Account. To qualify for the SpotMe on Debit service, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account each month and have activated your Visa debit card. Qualifying members will be allowed to overdraw their Chime Checking Account for up to $20 on debit card purchases and cash withdrawals initially but may later be eligible for a higher limit of up to $200 or more based on Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Debit limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe on Debit, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe on Debit will not cover any non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. SpotMe on Debit Terms and Conditions.

32. Tipping or not tipping has no impact on your eligibility for SpotMe®.

33. Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

34. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more from your Checking Account into your savings account.

35. Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.

36. Mobile Check Deposit eligibility is determined by Chime in its sole discretion and may be granted based on various factors including, but not limited to, a member’s direct deposit enrollment status.

37. Funds are automatically debited from your Checking Account and typically deposited into the recipient’s Checking Account within seconds. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed.

38. Pay Anyone transactions will be monitored and may be held, delayed or blocked if the transfer could result in fraud or another form of financial harm. Sometimes instant transfers can be delayed. Non-Chime members must use a valid debit card to claim funds.

* EarnIn is not available for Connecticut residents

Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

You Can Build Credit By Paying Rent

Key takeaways

Jump to: