If you’re looking for ways to increase your credit score, we have an easy answer for you: paying rent online! A 2017 TransUnion study of 12,000 renters found that renters’ scores rose an average of 16 points within six months, and the benefit was greatest for those who started with a credit score below 620.
So, try paying your rent online and see what it does to your credit score! Paying online ensures your payments are reported, shows credit bureaus what they are looking for, and can combine with credit card payments to increase your score even more. Here’s how.
Send Your Payments to Credit Bureaus
Paying rent is a pretty simple way to increase your credit score! But how does it work?
“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.”
Okay, so you have to make sure your payments are recorded. But how? At The Crossings at Chino Hills, our online rental payment system reports information to the credit bureaus. Credit bureaus then receive a record of your on-time rental payments, contributing to your good credit.
Beef Up Your Payment History
When looking for ways to increase your credit score, it’s important to consider what actually goes into it. Here’s how Experian determines credit scores:
- Use of credit cards
- Payment history
- Applications for new loans and credit
As you pay rent online, those payments become part of your payment history, and that becomes part of your score. Easy!
Boost Your Score Even More
To take this credit-score-boosting to the next level, consider using a credit card specifically to pay your rent.
“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 an extra boost to your credit score in combination with the benefits of paying your rent online.
If you’ve been looking for ways to boost your credit score, try 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. And if you choose to pay rent with a credit card, you may increase your score even more. We wish you credit score success!