If you’re one of the 36% of Americans who rent then you know that your monthly payment is one of the most important bills that you have to pay. But did you know that you can also report your rent payments to credit bureaus?
Rent reporting can help improve your credit score and make it easier for you to get approved for a loan or mortgage in the future. That’s why, in this quick guide, we're going to teach you all about the benefits of rent reporting and tips for reporting your rent effectively.
How Rent Reporting Helps You Build Credit
Your payment history accounts for 35% of your credit score. This is because lenders and credit card companies measure your creditworthiness by your ability to repay the money you borrow.
By reporting your rent payments to the major credit bureaus, you can show that you are able to responsibly pay a recurring bill on time each month. This helps to improve your payment history, which, as we’ve just gone over, is one of the most important components of your credit score.
In addition, rent reporting can also help to increase the overall diversity of your credit accounts, namely, credit mix, adding positive information to offset any negative information that may already be on your report.
So why not take advantage of this simple way to boost your credit? You’re not sure how to report your rent? Keep reading to find out how to boost your credit score overnight by taking advantage of rent reporting tactics.
How to Report Your Rent
Are you tired of being a responsible renter and not getting any credit for it? As mentioned above, reporting your rent can boost your credit score and show future lenders that you are financially responsible.
Follow these steps to start reporting your rent payments immediately.
Speak With Your Landlord
Before signing up for a rent reporting service, it's important to speak with your landlord first. These services can have a positive impact on your credit score by demonstrating responsible payment habits, but they won't work if your landlord doesn't agree to participate.
Plus, it's always good to keep the lines of communication open with your landlord about any changes in how you will be paying rent.
Most rent reporting services will need your landlord’s confirmation of your lease, so simply check in with them to ensure they’re okay with you reporting your rent or, in some cases, if they’ve already signed up for a rent reporting service themselves.
Choose a Rent Reporting Company
With the wide range of rent reporting companies out there, it can be tough to choose the best one for you.
One important factor to consider is whether the company reports to the three major credit bureaus: Experian, TransUnion, and Equifax. Most rent reporting companies report to Equifax and TransUnion, while a few report to all three.
Another thing to keep in mind is whether the company charges a fee for their service. Most do, and most charge a one-time setup fee that allows them to run a rental history check so they can report rental payments for the past two years.
They’ll also likely charge an ongoing monthly fee. Cheese’s new rent reporting service is $5 per month, but most companies have monthly fees ranging between about $6 to $10.
Finally, it’s worth looking into how easy it is to set up automatic payments with the company and any additional benefits they offer, such as rental histories or online rental applications.
By considering these factors, you'll be able to choose the best rent reporting company for you and start reaping the benefits of rent reporting.
Understand the Rent Reporting Process
The rent reporting process is pretty straightforward after you sign up for a rent reporting service. Each month, when rent is paid on time, the rent reporting service will report this payment to the credit bureaus.
This helps boost your credit score and shows future landlords or lenders that you're a responsible renter.
On the flip side, if rent is late or unpaid, this will also be reported to the credit bureau and can negatively impact your score. So make sure to pay rent on time to benefit from rent reporting!
How Much Does Your Credit Increase With Rent Reporting?
If you’re interested in learning how to build your credit fast and how to fix credit to buy a house, get better interest rates, or simply enjoy a higher credit score then rent reporting is a great tool.
While you likely won’t see a steep increase from 550 to 800 overnight, most consumers note that their credit score increases anywhere between 20 to 50 points within one month after reporting rent payments to credit bureaus.
How Long Does It Take for Your Credit Score to Increase With Rent Reporting?
Want to know how to improve your credit score in 30 days? Depending on your current credit score and your rent payment history, rent reporting could help you boost your credit score fast. In fact, we’ve seen that, by using rent reporting services, many consumers see an average boost of anywhere between 20 to 50 points in as quickly as 15 days.
Again, the amount that your score can increase depends on other factors such as your total amount of debt, your credit usage ratio, and other metrics. However, in most cases, those with less-than-excellent credit notice a nice increase in their credit score simply from reporting their rent to the right rent reporting company.
Sign Up for Cheese’s Rent Reporting Service
Want to know how to build credit fast? Look into rent reporting!
If you’re ready to get started then we’ve got you covered. By signing up for our rent reporting services, your rent payments will be reported to all 3 major credit bureaus each month. This can help boost your credit score fast.
Plus, our rent reporting service is convenient and easy to use. It's as simple as submitting your rent payment information through the Cheese mobile app. So why wait? Don’t miss out on the Cheese rent reporting service launch in December 2022 to take control of your financial future!
