Did you know that paying rent online can improve your credit score? According to credit.com, “Rent payments that are reported show up like an auto loan if you have a defined lease term. They show up like a charge card when you pay month-to-month. Either way, a positive rental payment history can help show that you pay your bills on time.”
If you’ve been trying to improve your credit score, this could be just the key you’ve been looking for. Paying rent online not only establishes a payment history, but it also shows credit bureaus the information they are looking for, and you can combine rent payments with a credit card for an additional boost to your credit! Let’s take a look at how these things can work for you!
Paying rent online is a great way to have a thorough payment history. At The 5800 Apartment Homes, we offer an online rental payment system that reports information to the credit bureaus. That way, credit bureaus receive a record of your on-time rental payments, which contributes to your good credit.
“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.”
Credit Bureau Reports
Paying rent online is also going to keep a record of the things that credit bureaus are looking for. Experian, for example, determines credit scores through the use of credit cards, payment history, and applications for new loans and credit.
When you pay rent online, these things are reported in your payment history. As you pay on time and in full and continue to do so, this will improve your credit score!
In addition to paying rent online, using a credit card to pay your rent may be worth considering.
“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.”
Paying your rent online does not have to be done with a credit card. However, it is a good opportunity to improve credit through your credit card while you are making the switch to online payments.
At The 5800, we wish you the best in improving your credit as you pay rent online through our resident portal. As you do, your payments will be recorded and reported with the information the credit bureaus are seeking. Plus, using a credit card to make these payments could give your credit the boost it needs!