Did you know you can increase your credit score by paying your rent online? A recent study by RentTrack showed that those who reported their online rental payments increased their credit score by an average of 29 points after just two months!
Paying rent online and reporting it is a great way to increase your credit score quickly. That’s because it ensures your payments can get seen by credit bureaus and are counted in your credit report. Furthermore, credit card payments specifically will result in a higher score from credit card use.
Get Payments Seen by Credit Bureaus
What actually goes into a credit score, and does paying rent online contribute? According to Experian, credit scores are determined by the use of credit cards, applications for new loans and credit, and payment history. When you pay rent online, those payments become part of your payment history. When you continually pay on time and in full, that becomes part of your score, too.
However, “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.”
So how do you make sure your rent payments are reported? First, you must submit your rental payment online. At Corona Pointe Resort, we offer an online rental payment system that is convenient for our residents. Then, a rent reporting agency can help you report it to the main credit bureaus to make sure it is included in your credit report.
Get a Higher Score from Credit Card Use
To boost your score even more, using a credit card specifically to pay your rent may be something 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.”
You don’t have to pay your rent with a credit card, but it can be a nice little boost to your credit score in combination with the benefits of paying your rent online.
Give your credit score a boost by paying your rent online through the resident portal. As you do so, your payments are reported to credit bureaus, showing them exactly what they are looking for. Plus, if you choose to pay rent with a credit card, you may increase your score even more. Happy credit-score-boosting!