Are you looking for a way to improve your credit score? It’s easy if you’re paying rent online. In a 2017 study, TransUnion found that renters who report their rent payments to credit bureaus were able to increase their credit scores by 16 points on average in six months.
By paying rent online, you guarantee that your payment history is reported, thus ensuring a better credit score for yourself. You can do even more good for yourself by using a credit card to pay your rent.
Ensures Your Payments Are Reported
“Simply paying your rent will not help you build credit,” says Bev O’Shea at NerdWallet. “But reporting your rent payments can help you build credit—especially if you are new to credit or do not have a lot of experience using it.”
At Eastside, the process is simple enough with our online payment system because it reports your payments to credit bureaus for you. All you have to do is make your payments each month and leave the rest to us. In order to opt in for the credit reporting, follow these steps:
- Log in to your account through the resident portal and click on “Make a Payment Now.”
- Select “Build your credit history by opting in to credit reporting.”
- Enter your information in the credit reporting fields. Be sure to select “yes” for month-to-month lease if you have one, or select “no” and a lease end date.
Shows Credit Bureaus What They Are Looking For
Being knowledgeable of what credit bureaus look for when assigning your credit score is important when it comes to building your credit. Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
Paying your rent on time contributes positive transactions to your payment history, thereby improving your credit.
Combines with Credit Card Payments for Higher Score Gains
Consider using a credit card when paying rent online to add an extra boost to your credit gains.
“Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month,” says LaToya Irby, credit expert for The Balance. “The timely credit card payments will help boost your credit score.”
Of course, you don’t have to pay with a credit card if you choose to pay your rent online, but if you’re looking to build some extra credit, it could be the way to go.
Next time rent comes due, consider paying rent online and using the resident portal to do so. Enjoy watching your credit grow as your payments are reported to credit bureaus, showing them exactly what they are looking for. Plus, if you choose to pay rent with a credit card, you may increase your score even more. Happy credit-score-boosting!