Do you want a quick way to build your credit score? Simply paying rent won’t improve your credit score on its own, but there are a few things you can do to make sure your rent payments are counted towards a higher credit score.
If you want your rent payments to improve your credit score, start paying rent online, make sure your rent payments are reported, and pay with your credit card to increase your credit score even further. If you do those things, you will get a boost in your credit score in no time!
Start Paying Rent Online
According to Experian, a credit score is determined by the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
When you pay rent online, those payments become part of your payment history. As you pay on time and in full and continue to do so, that becomes part of your score, too. At Avignon Apartments, we have conveniently implemented a resident portal to make online payments easy.
Report Your Rent Payments
Once you have paid your rent online, you must make sure your payments are recognized by the credit bureaus and calculated into your report. According to RentTrack, “It’s not possible to report information directly to the big three credit bureaus: TransUnion, Experian and Equifax.” Using a reporting agency such as RentTrack will make sure your payment is seen by credit bureaus.
Pay with a Credit Card
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.
As you pay your rent payments online and make sure the rent gets reported to credit bureaus, you will see your credit score improve. Furthermore, paying with your credit card will make sure you get the fullest benefit for your credit score!