Rent Reporting Services: Can Paying Rent Build Your Credit?
You pay rent every month—shouldn't that help your credit? Traditionally, rent payments weren't reported to credit bureaus. But rent reporting services are changing that. Here's what you need to know.
How Rent Reporting Works
Rent reporting services verify your rent payments and report them to one or more credit bureaus. This adds a tradeline to your credit report showing your payment history.
Types of Rent Reporting
Landlord-Based
Some property management companies report rent directly through services like:
- RentTrack
- PayYourRent
- Rent Dynamics
Tenant-Initiated Services
You sign up and connect your bank account or provide proof of payments:
- Rental Kharma
- Boom
- LevelCredit (now Self)
- Experian Boost (free, but only Experian)
How Much Does It Help?
Impact varies based on:
- Your current credit profile
- Which bureaus receive reports
- Your overall credit mix
Typical impact:
- No credit history: Can establish a score
- Thin file: May add 10-50 points
- Established credit: Smaller impact, 5-20 points
Costs
Services range from free to $100+/year:
- Experian Boost: Free (Experian only)
- Self/LevelCredit: $6.95/month
- Rental Kharma: $50 one-time + $8.95/month
- Boom: $2/month
Who Benefits Most
Rent reporting is most valuable for:
- People with no credit history
- Those with thin credit files
- Renters without other tradelines
- Anyone trying to establish credit without debt
Limitations
Consider these factors:
- Not all lenders use scores that include rent
- Some only report to one bureau
- Late rent payments can hurt your score
- Cost may outweigh benefits for some
Alternatives
If rent reporting doesn't fit, consider:
- Secured credit cards (similar credit-building benefit)
- Credit-builder loans
- Authorized user status
- Experian Boost for utilities (free)
Is It Worth It?
Worth it if:
- You have little or no credit history
- You always pay rent on time
- The cost fits your budget
- You're actively trying to build credit
Skip it if:
- You already have established credit
- You sometimes pay rent late
- You'd rather invest in other credit-building tools
Rent reporting can be a valuable tool in your credit-building toolkit, especially if you have a thin credit file. Evaluate the costs and benefits for your specific situation.