How to Build Credit With Rent Payments (7 Services That Will Help)

If you pay rent but have a low credit score, it might seem unfair. After all, rent is a substantial monthly expense that requires regular payment. So why don’t credit bureaus include it in their credit score calculations?

Rent payments are generally made with checks or direct deposit transfers. Because those are cash-like transactions, they aren’t automatically reported to credit bureaus. Fortunately, there are several services you can use to have your rent payments considered as part of your credit history. Over time, those services can help you build up your credit and get the recognition your gold-star payment history deserves. Here’s how to build credit with rent payments.

Does paying rent build credit?

Landlords don’t traditionally report rent payments to credit bureaus, and most credit-scoring models don’t include rental payments. However, paying rent can potentially help you build credit under certain circumstances.

These days, some credit-scoring models use alternative data to calculate your creditworthiness. Additionally, some landlords and rental platforms also offer you the option to report your rental history to credit bureaus. This can further contribute to building credit.

The Benefits of Credit Building

Good credit is important for a number of reasons. For one thing, it can help you qualify for lower interest rates on future lines of credit, including private student loans¹, auto loans, and mortgage loans. It may also help you meet eligibility requirements for a credit limit increase on your credit cards.

If you’re a student loan borrower, there are other benefits. A good credit score can qualify you for refinancing², a tool you can use to lower your monthly payments and even get out of debt faster³.

How to report your rent to credit bureaus and build credit

It’s important to note that the impact of rent payments on credit scores can vary. It’s always a good idea to inquire with your landlord or rental platform about their reporting policies to understand how it all works. Keep in mind that once you start reporting rental payments to credit bureaus, you’ll have to be extra careful to make your payments on time. Otherwise, they could hurt your credit as much as they help. But if you have a strong track record, follow these steps to start boosting your credit.

1. Confirm rent reporting policies

The first step is to check whether your landlord or rental platform offers the option to report rent payments to credit bureaus. Reach out to your landlord or property management company, or check your rental agreement to determine their policies and procedures regarding enrollment and reporting. If it all looks good to you, ask to enroll to start building credit.

2. Choose a rent reporting service

If your landlord does not offer rent reporting, consider signing up with a rent reporting service. Some of these services act as intermediaries, collecting your rent payment data and reporting it to credit bureaus on your behalf. Others are apps that renters can use without assistance from their landlords. These apps simply connect to your bank account and report when your self-identified rent payments are made by your self-set deadline.

Before you pick one of these services, make sure you understand the fees associated with them. Some providers charge only a monthly subscription fee, while others tack on one-time fees or setup fees. Also check whether the service reports to all three credit bureaus, which will give you a better overall credit boost. Here are a few to consider.

Free rent reporting services:

• Experian Boost: Boost is free to use and allows renters to self-report payments made through connected bank accounts. Because it’s run by Experian, your score could increase instantly upon signing up, though it’s unclear exactly how much of an increase you could see. This service also allows people to connect streaming services, cell phone bills, and utility bills, for which people see an average of a 13-point increase. (Experian discloses, however, that mortgage lenders typically disregard Boost data when making decisions on potential borrowers.)

Rent reporting services paid by renters:

• Piñata: Piñata enables renters to verify on-time payments through an app that connects to your bank account. The service provides renters with rewards from companies, like Airbnb and Starbucks, for paying their rent on time — similar to cash-back rewards you’d get on a credit card. The “limited-rewards” version of the app is free to use, but doesn’t report to credit bureaus. But for $60 per year, the app will report on-time rent payments to all three bureaus. This reporting includes both previous rent payments as well as all future payments. According to Piñata, some users are able to increase their scores by up to 150 points. (Just keep in mind that this kind of credit-building can take some time.)

• Boom: For just $3 per month, Boom reports self-verified rent payments to all three credit bureaus. Better yet, it only provides “positive reporting,” which means if you miss a payment, Boom won’t report that. If you’re in a hurry to raise your score, you can pay $25 to report payments from the past 24 months. The site claims that, on average, users see a 105-point increase from signing up.

• RentTrack: RentTrack is a service for landlords and property managers to provide rent reporting for their tenants, which is reported to all three bureaus. Your landlord will need to sign up for it, but you’ll need to pay a monthly fee for reporting, the cost of which is not disclosed on the website. You can also pay a one-time fee of $50 for up to 24 months of back reporting. A testimonial claims renters saw an average increase of 57 points within a few months of signing up.

Rent reporting services paid by landlords or property managers:

• PayYourRent: PayYourRent is a processing service that takes payments on behalf of landlords and reports them to all three bureaus. It’s paid for by the landlord and also allows tenants to make maintenance requests.

• Esusu: Esusu provides credit reporting and monitoring tools for renters, and is paid for by the landlord. However, your landlord may be able to get the service free for 12 to 24 months if they have an eligible loan serviced by Fannie Mae or Freddie Mac.

• Jetty Credit: Jetty provides a suite of services to landlords and renters, including a service deposit-replacement service that allows you to pay a lower — but nonrefundable — fee rather than a month or two worth of rent as your security deposit. JettyCredit is part of the Fannie Mae Positive Rent Payment program and is free to renters whose landlords sign up.

3. Provide documentation

Once you’ve selected a rent reporting service, you’ll generally need to provide documentation to verify your rental payments. This can include copies of your lease agreement, rental receipts, or other forms of documentation that prove your consistent and on-time rental payment history. Make sure to follow the specific instructions provided by the rent reporting service to ensure accurate reporting.

4. Understand credit bureau reporting frequency

Credit bureaus typically update credit reports regularly, but the frequency at which they receive rent payment data can vary. Some rent reporting services may report rent payments on a monthly basis, while others may report less frequently. Make sure you understand the reporting frequency. That way, you’ll have realistic expectations about how long it may take to see the impact on your credit history.

5. Monitor your credit report

After setting up rent reporting, it is essential to monitor your credit reports regularly. That way you can double-check that the rental payments are accurately reflected. Make sure to check your credit reports from all three major credit bureaus (Equifax, Experian, and TransUnion). If you spot credit reporting errors, you’ll be able to contact the credit bureau and get those errors addressed quickly.

Which credit scoring models report rent?

Some of the latest FICO score models — like FICO 9 and 10 — and modern VantageScore models take rent into account when it’s reported to them. These models aren’t yet widely used in many industries, but may become more widespread in the future. The bad news: If you pay cash to a private landlord and they don’t use a reporting service, that information won’t impact your score, even with these models.

How much do rent payments affect my credit score?

How much your score increases (or decreases) could depend on the service you use, as well as your existing score. Some services, such as Boom, only report positive rental payment information. Others will report all data, including missed payments.

If you currently have no credit or a low credit score, reporting your data could increase your score substantially — potentially pushing you into a new score class that gives you access to much better financing. According to testimonials published by the rent reporting services listed above, users could see increases of anywhere from 50 to 100 points or more.

Is reporting my rent to a credit bureau a good idea?

Reporting your rent to a credit bureau could enhance your credit profile if, and only if, you always pay your rent on time. If you struggle to make your rent payments or if you’re regularly late, this could be a risky strategy. While a private landlord might not worry so much about a rent check that arrives a day or two late, that information could lower your credit score if it’s reported to credit bureaus.

Explore student loan refinancing with Earnest

Your credit score is a complex measurement that includes many personal finance variables — from credit utilization to the amount of time you’ve had your accounts open. But the biggest factor by far? Payment history.

If you always make your rent payments on time, you could leverage that stellar payment history to boost your credit score. Simply apply for a rent-reporting service and watch your credit score rise. That enhanced credit file could give you better financial opportunities — including lower rates on student loan refinancing. Over time, refinancing could help you save big on your student loan debt.

Ready to see what kind of rate you could qualify for? Use Earnest’s student loan refinancing calculator to calculate your future interest rate, monthly payment, and overall savings. It’s fast and easy, and it won’t impact your credit.

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

¹ Before applying for private student loans, it’s best to maximize your other sources of financial aid first. It’s recommended to use a 3-step approach to assembling the funds you need: 1) Look for funds you don’t have to pay back, like scholarships, grants, and work-study opportunities. 2) Next, fill out a FAFSA(R) form to apply for federal student loans. Federal Direct subsidized and unsubsidized loans, excluding PLUS Loan for Parents and PLUS Loan for Graduate and Professional Students which require a credit check and a credit worthy endorser if the parent or graduate or professional student has adverse credit, do not require a credit check or cosigner, and offer various protections if you're struggling with your payments. 3) Finally, consider a private student loan to cover any difference between your total cost of attendance and the amount not covered in steps 1 and 2. For more information, visit the Department of Education website at https://studentaid.gov/.

² Please note that you may lose benefits associated with your underlying federal loans, such as federal Income-driven Repayment Plans (an example of which is the SAVE plan), Economic Hardship Deferment, Public Service Loan Forgiveness, or other deferment and forbearance options, if you refinance into a private loan. If you file for bankruptcy, you may still be required to pay back this loan.

³ Choosing to refinance to a longer term may lower your monthly payment, but increase the amount of interest you may pay. Choosing to refinance to a shorter term may increase your monthly payment, but lower the amount of interest you may pay. Review your loan documentation for the total cost of your refinanced loan.