Looking for ways to improve your credit scores quickly? Whether you’re hoping to qualify for a new loan, apply for a credit card, or find a new apartment, it’s normal to want to gain points fast.
During times like these, people with less-than-perfect credit often find themselves wondering, “Can I have my rent payments added to my credit reports?” and “Can my rent payments help me gain points?”
As a credit expert and former NFCC-certified credit counselor, I’ve helped thousands of people navigate questions like these. In short, you should know that there are ways to get rent payments added to your credit file, but unfortunately, they’re not guaranteed to improve your credit scores.
If you want to use your rent to improve your credit, there are a few things you need to know first.
In my experience, most people are surprised or even frustrated when they find out that rent payments are not included in their credit reports and are not factored into their credit scores.
The reality is that credit reports are a record of your history with debt. Since rent is just a bill and not debt, it doesn’t get reported to the credit bureaus unless you miss payments and your overdue bill goes to collections.
However, in recent years, “rent reporting services” have made it possible to add rent and some other non-debt bill payments to your credit profile. If you use one of these services, there’s a chance you might see improvements in one or more of the many different versions of your credit scores.
Boom charges $60 to report your rent payments to all three credit bureaus (Experian, Equifax, and TransUnion) for one year. However, if you want your past rent payments reported — which can help improve your credit scores faster — you’ll need to pay a one-time fee of $25. This fee allows you to add up to 24 of your past rent payments, but only if they’re for your current lease.
Unlike other rent reporting services, Boom only reports your on-time rent payments, so you won’t risk taking a major hit to your credit scores if you pay your rent late.
According to Boom, users gain an average of 28 points in two weeks by using the service.
Experian Boost may be the only free rent reporting service on the market. But it’s also the most unpredictable when it comes to the outcome.
With Boost, your rent payments only appear on your Experian credit reports. Therefore, it only impacts the credit scores that are generated based on your Experian reports. So, there’s a good chance a creditor could pull a version of your credit scores based on Equifax or TransUnion data, which wouldn’t include your rent payment information. Additionally, mortgage lenders do not usually evaluate credit scores that are impacted by Boost.
According to Experian, Boost only reports “online residential rent payments made to select property management companies or rent payment platforms.” So, there’s also a chance your rent won’t be eligible for reporting. However, other payments, such as utility bills or streaming services, may qualify.
According to Experian, the average Boost user sees a 13-point increase in their credit scores, but they do not guarantee that your scores will improve at all. In fact, there’s a chance your scores could drop if you’ve missed rent payments in the past.
With Piñata, you pay $60 for a one-year membership. Unlike other rent reporting services, you don’t have to pay extra to have past rent payments added to your reports. Your membership fee covers up to 24 months of back rent payments.
Piñata reports to all three credit bureaus, and according to the company, users gain an average of 60 points in one year. As a Piñata customer, you also get a no-fee checking account and redeemable rewards for paying your rent.
One downside is that some customer reviews state that Piñata is inconsistent when it comes to reporting their rent payments.
Rental Kharma is more expensive than some of the other rent reporting services, and they only report your rent payments to TransUnion and Equifax (not Experian). On the plus side, the company offers a 90-day, 100% money-back guarantee.
With Rental Kharma, you pay $8.95 per month for membership (which comes out to $107.40 per year). There’s also a $75 fee to have past rent payments reported, but this covers all of your payments for your current rental property, even if you pay with cash.
According to Rental Kharma, clients’ average score increase is 40 points. However, if you have any past rent payments that were over 30 days late, the service is likely to hurt your scores more than it will help.
Read more: 8 common reasons why your credit score could have dropped
If you have a thin credit file or are working on improving your credit scores, using a rent reporting service can help add positive credit history to your name. However, there are downsides to these services to consider as well.
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You’ll get credit for your on-time rent payments.
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There’s potential to improve your credit scores and qualify for better loans and credit cards or get approved for apartments.
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Free services are available.
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There’s no guarantee your credit scores will improve.
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Late rent payments can appear on your credit reports and cause your scores to drop.
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Some creditors do not use credit scores impacted by these services.
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You typically have to pay extra to have past rent payments reported.
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Rent can’t be reported for a property where you no longer live.
With rent reporting services, you definitely won’t gain 100 points overnight. In fact, there’s usually no guarantee you’ll see positive results.
Before linking your bank account or handing over any money, I recommend checking to see what’s actually being offered and ensuring you qualify to have your rent payments reported.
If you have a new lease, these services won’t do much for you in the short term, since you can only have past payments reported for your current lease. Over time, however, your future rent payments can help you build credit. That said, there are other ways to improve your credit scores without paying a third party.
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