How Paying Rent Can Boost Your Credit Score

Jul 20, 2025  •  STAFF

Introduction

If you’re paying rent every month, you’re already doing one of the most important things lenders look for — making on-time payments. But unless your rent is being reported to the credit bureaus, it won’t help your credit score.

The good news is, there are now several ways to report your rent and build credit without taking on debt or opening a credit card.

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Why Rent Reporting Matters

Most landlords don’t report rent to credit bureaus by default — which means even if you’ve paid on time for years, your credit file won’t reflect it.

But by using rent reporting services, you can:

  • Establish credit if you don’t have any
  • Rebuild credit after hardship or debt
  • Improve your credit score to qualify for housing or loans

How Rent Reporting Works

You (or your landlord) enroll in a service that verifies rent payments and reports them to one or more of the major credit bureaus: Experian, TransUnion, and Equifax.

Some popular services include:

  • RentReporters
  • Rental Kharma
  • Self (rent + credit builder loans)
  • LevelCredit
  • Esusu (used by many property managers)

Most services charge a monthly or annual fee — usually $7 to $10/month — though some landlords cover the cost.

💡 Tip: Reporting rent can’t hurt your credit. It only helps if payments are on time, and missed payments usually aren’t reported.

Who Should Use Rent Reporting?

Rent reporting is especially helpful if you:

  • Have little or no credit history
  • Are trying to rebuild your score after financial trouble
  • Plan to apply for a loan, credit card, or new housing soon
  • Can’t get approved for a secured card

If you're also behind on rent or worried about eviction, look into Emergency Rental Assistance first.

How to Get Started

  1. Consider a service like Boom — they make it easy to report rent payments and even offer the option to back-report up to 24 months for a stronger credit boost
  2. Ask your landlord or property manager if they already use a rent reporting system
  3. Choose a rent reporting service and enroll (some allow self-reporting)
  4. Verify your lease and past payments
  5. Check your credit report after a few months to see the impact

Some services even let you report up to 24 months of past rent to give your credit file a head start.

Tips for Building Credit Safely

  • Start small: Avoid high-interest loans or sketchy “credit repair” ads
  • Monitor your credit: Use free tools from your bank or AnnualCreditReport.com
  • Pay all bills on time: Utility and phone bill history may also help your credit if reported

💡 Bonus Tip: If you're already budgeting rent carefully, rent reporting is one of the easiest low-risk ways to build credit — no new debt required.


References

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