It’s sort of a Catch-22 situation – rent won’t help you build credit, but it could hurt your credit score if you don’t pay.
Some services promise to report your monthly rental payments and rental history on your credit report now, too – for a fee.
According to one credit expert, probably not.
Can paying rent build credit?
In some cases, paying your rent on time may help you build credit. Each of the three major credit reporting agencies — Equifax, Experian and TransUnion — will include positive rent-payment history on your credit reports, if they receive it. You cannot self-report your rent payments to the credit bureaus.
Can you add rent to credit report?
RentalKharma will add up to 24 months of past rent payments to your credit report. You pay RentTrack, they pay your rent, and report timely payments to all three major credit bureaus. You’ll pay a monthly service charge depending on your landlord and payment type.
Does rental Kharma really work?
Primarily, Rental Kharma Offers a monthly credit reporting product for renters. They will verify that your rent has been paid, then report it to TransUnion for inclusion on your credit report. Essentially, Rental Kharma works with your current landlord and reports on time (or late) rent payments to TransUnion.
Is Experian boost a good idea?
In short—yes, Experian Boost is safe. Experian utilizes read-only access to your bank statement data to find your qualifying payments made to telecom and utility companies. This process is secure, and Experian does not store any consumer bank credentials—it only stores a record of any qualifying on-time payments.
How can I quickly raise my credit score?
Here are seven of the fastest ways to increase your credit score.
- Clean up your credit report.
- Pay down your balance.
- Pay twice a month.
- Increase your credit limit.
- Open a new account.
- Negotiate outstanding balances.
- Become an authorized user.
How long does it take to build credit?