Did you know that paying online rent can help build your credit? A recent RentTrack study showed that those who paid their rent online and reported it saw an average increase in 29 points in their credit after just two months. One renter was able to increase credit by 263 points over 21 months!
Paying rent online and reporting it can boost your credit score quickly. That’s because it ensures that credit bureaus see your rent payments and factor them into your credit report. Plus, your credit score can benefit even more if you pay with a credit card. Here is all you need to know.
Paying Online Rent
What actually goes into a credit score, and does paying rent online contribute? According to Experian, credit scores are determined by the following:
- Use of credit cards
- Payment history
- Applications for new loans and credit
When you pay rent online, those payments become part of your payment history. As you pay on time and in full and continue to do so, that becomes part of your score, too. If you are paying your rent with a check or going into the office, the first step is to start paying rent online.
Once you have paid your rent online, you need to make sure your payments are recognized by the credit bureaus and factored into your report. This can be done through rent reporting, which is “the reporting of monthly on-time rent payments to credit bureaus in order to boost an individual’s credit score,” according to RentTrack. This process doesn’t happen automatically, but using a reporting agency such as RentTrack will make sure your payment is seen by credit bureaus.
Using a Credit Card
Another way to make sure that your rent is reported is by paying rent with your credit card. This makes rent show up automatically in your payment history, and most credit bureaus now include rent payments in their reports. By paying rent on time and in full, you can quickly improve your credit score.
If you decide to pay rent with a credit card, make sure your landlord accepts credit card payments. Here at Eastside Apartment Homes, we accept credit cards and encourage residents to pay with a credit card to get the full benefit of their payments toward their credit.
At Eastside, we have made all of this easy for you through our online resident portal. As you pay online with our portal, make sure those payments are reported to credit bureaus, and pay with a credit card, you could see your credit score increase in just a few months!