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If you’ve got less-than-stellar credit or are working to build it from the ground up, your rent payments could come to the rescue. 🦸 Let’s dive into the world of rent reporting services. ⏬
Here’s Five Fast Facts on rent payments and credit scores:
- 💳 History Lesson - A rent reporting service tracks your rent payment history and reports it to one or more of the three major credit bureaus (Experian, Equifax and TransUnion). These services could boost your credit score significantly - we’re talking an average of 60 points.
- 📈 Latest Report - Rent reporting is catching on across America. According to a new TransUnion report, rent payments reported to the major credit bureaus went from 11% last year to 13% this year.
- 🚀 Zoom Call - Which generation uses rent reporting services the most? Not a shocker: Gen Z. This year, roughly 18% of Zoomers do it, as well as 16% of Millennials, 12% of Gen Xers, and 8% of Boomers.
- 💵 Cost Catcher - Reporting your rent to the major credit bureaus can be a good thing, but there’s a catch. Not all services are free. Monthly fees can be anywhere from $6.95 to $9.95. You could also get hit with one-time enrollment or setup fees between $25 and $95.
- 👀 The Fine Print - When shopping for a rent reporting service, make sure it reports payments to all three credit bureaus. Some only report to one or two, which could make your credit history look wonky. Also check what kinds of payments they report: some only report on-time, in-full payments while others include late payments.
🔥Bottom line: Another thing to consider: if your credit score is already stellar, you probably don’t need to add your rent payments in the mix. Save your pennies for a rainy day (or a trip to the dispensary). Are you a “yes man” on the job? Doing favors for everyone in the office could backfire. Head to this article to read about why saying yes too often might hurt your career.
Do you use rent payments to boost your credit score?
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