If you’re looking for ways to increase your credit score, we have an easy answer for you: Try paying rent online! A 2017 TransUnion study of 12,000 renters found that renters’ scores rose an average of 16 points within six months, and the benefit was greatest for those who started with a credit score below 620.
Try paying rent online and see what it does to your credit score! Paying online ensures your payments are reported, shows credit bureaus what they are looking for, and can combine with credit card payments to increase your score even more. Here’s how.
Your Payments Are Reported
Why does it have to be online? “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 The Edward Apartments, we have an online rental payment system that reports information to the credit bureaus. When they receive a record of your on-time rental payments, your credit score improves.
Shows Credit Bureaus What They Are Looking For
To understand how online rental payments make you look good, it helps to understand what goes into a credit score. Experian, for example, calculates credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
So, when you make an online rent payment, 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.
Combines with Credit Card Payments for Higher Score Gains
To take this credit-score-boosting to the next level, consider using a credit card specifically to pay your rent.
“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.”
You don’t have to pay your rent with a credit card, but it can be an extra boost to your credit score in combination with the benefits of paying rent online.
At The Edward Apartments, you can increase your credit score by paying rent online through the resident portal. You’ll get your payments reported and look good to the credit bureaus. And if you use a credit card exclusively for rent, you may see even more of a boost. Best wishes in your journey towards the best credit score of your life!