How to get my landlord to report rent payments to credit bureaus is a very common question that comes to the mind of every renter. There are undoubtedly a lot of people who don’t have much credit history, but they indeed have a history of paying rents on time. However, most of the time this particular information isn’t shown in their credit report nor does it affect their credit scores. A person can never report rent payments all by themselves, but he or she can opt for different rent reporting services in order to get credit reports that reflect rent payments quite easily.
In order to use a rent reporting service properly, firstly you must know which credit bureau is the right choice for your and which credit score takes those rent payments into account. It is further important to understand that you further need to understand all your alternatives.
How To Get My Landlord To Report Rent Payments To Credit Bureau– Can It Help In Building Credit?
Remember, simply paying off your monthly rentals can never help in building a great credit score. However, reporting all your rent-related payments can help in building one especially if you are new to credit or if you don’t have a lot of experience in credit use. In the year 2017, a study conducted by TransUnion followed almost twelve thousand renters for a year while they reported all their rent-related payments. It was seen that scores rose sixteen points on average within the first six months after the rent reporting began. Moreover, the largest increase was seen for the scores that were below 600, which is often considered to be bad credit.
Furthermore, having detailed information about rent payment in your credit report can be really helpful in your future plans to rent another place. Most landlords prefer those tenants who are able to show a history of timely paying of rents.
Can Reporting Rent Payments Affect Credit?
In case you are thinking of how to get my landlord to report rent payments to credit bureaus then remember, all the three major credit bureaus such as Experian, TransUnion, and Equifax can include rent-related information in credit reports especially if they receive it. Rent payments in turn help in providing data that can directly affect the credit score. The two major credit score companies such as VantageScore and FICO, vary in the ways they handle credit-related information:
- VantageScore, one of the biggest competitors of FICO, often considers rent payment information.
- The most common versions of FICO scores, don’t use rental information for calculating scores. However, newer versions of FICO such as FICO 9 or FICO 10 do consider rental information especially if it is in your credit report.
How To Build Credit Score For The Rent You Pay
It is very essential to keep in mind that the two major credit scoring brands such as VantageScore and FICO handle rent-related payment differently. As discussed earlier, the most commonly used FICO score doesn’t calculate rental payments directly. However, their newer versions such as the FICO9 and FICO10 take rental payments into account. VantageScore on the other hand incorporates rental payment information according to their credit scoring. This is mainly because of the inability of the renters to report their rent payment themselves. Mostly they might be requiring their landlord or a third-party reporting service in order to report their payments for them.
Having Your Landlords Report Your Monthly Rent Payment
Your landlord is a great source to report your rental payments. Most of the companies such as TransUnion and Equifax accept rent payment information directly from the landlords. However, in such cases, the landlords need to sign up directly to one of the services of these companies and pay all the associated fees. There can be times when some landlords would be inclined to skip all these efforts of signing up for a reporting service, but there’s also enough evidence that reporting rents to credit organizations actually help renters to pay their rent on time.
Paying Rent With Credit Card
In case you are thinking of how to get my landlord to report rent payments to credit bureaus, you can try thinking outside the box. Most of the first time renters overlook a simple payment option that can help in improving their credit score, i.e paying rents with the help of credit cards. There are some online rent payment platform that can help renters to pay their rent with the help of a credit card, further allowing them to get cash back and reward points on rent payment. Most of the time these payments aren’t listed as a different tradeline on a credit report, while further boosting a renter’s credit score if they consistently pay off their full balances like any other regular rent payment.
How To Start Reporting Your Rent Payment
The best way to do so is to talk to your landlords in order to find out if they have any system in place for reporting rent payments. In some instances, the landlord might offer the option to report rent to credit bureaus while helping you boost your credit.
Remember a good credit score can be really helpful in order to get financial security for the future, especially if you have plans to obtain a loan for purchasing a car or house. If you have any future plans to credit boost your account with the help of our house rents or utility bills you can always try us. We at Credit Rent Boost, generally work hand in hand with most of the tenants and landlords and report all the monthly payments to some of the major credit agencies of the US such as Equifax or TransUnion. If you want to know more about our services and offerings or if you have any questions about anything please visit our website.
