How To Report Rent to Credit Bureaus and Build Credit

Some property managers report rent to credit bureaus, and some don’t. Ask your landlord whether they do. If not, consider a third-party company that reports your rent payments. 

Reporting on-time rent payments can positively affect your credit score. But even with stellar payment history, it doesn’t guarantee a higher score. Not all scoring models consider rent.

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Does Paying Rent Build Credit?

Paying rent on time can help you to build credit. But just paying your landlord each month isn’t enough to guarantee an effect on your credit profile. Those payments must be reported to a credit bureau — either by your landlord or property manager, or through a rent-reporting service.

Also, getting those payments onto your credit report is only part of the process. Not every credit scoring model counts rent as an ingredient of your score. For example, newer FICO models (such as FICO Score 9 and 10) gladly accept rent, but others may not. Similarly, VantageScore 3.0 and 4.0 can incorporate rent payment data. That means you’ll only benefit when a lender checks your credit with an eligible scoring model.

Your credit report is different from your credit score. A credit report records your credit history, while your score is a number calculated from that information that acts as a report card for how trustworthy you are as a borrower.

How To Report Rent Payments

With such clear upside, you may be wondering, “How can I report my rent to credit bureaus?”

First, see whether your landlord already reports rent payments — or is willing to start. If, in fact, they offer the service, inquire as to whether you need to sign up. They may even offer a rent-reporting program through a separate company.

If your landlord offers neither, look for a service yourself. You typically can’t send rent receipts to a credit bureau and have those payments added to your reports, but an eligible reporting service — such as Self or RentReporters — can report them for you.

What To Check Before Choosing a Rent-Reporting Service

If you’ve concluded that a rent-reporting service is the way to go, check these details before you enroll:

1. Fees: Tally the setup charges, potential monthly fees, and any extra costs involved.

2. Bureau coverage: Which credit reports does each service report to (Equifax, Experian and/or TransUnion)?

3. Past payment eligibility: Can you add previous payments? If so, how far back can you post?

4. Verification: What all is required to verify your payments? Think payment records, landlord help, etc.

5. Timing: When does reporting start, and how often is it updated?

6. Late-payment treatment: Are late or missed payments also reported?

7. Data security: What information are you required to share? How well is it protected?

8. Cancellation: How easy is it to cancel if you decide you’d rather not report? What happens to all those previously reported payments?

A Separate Way To Manage Rent-Payment Timing

If you’d like more flexibility in when you pay rent, consider MoneyLion Split.

With MoneyLion Split, you pay your rent in two payments each month. It’s designed to make rent payments easier to manage. You don’t need a MoneyLion One membership to use Split. You pay your landlord directly, so they don’t need to sign up or participate. There’s a 3% total fee across the two payments —1.5% of the total monthly rent per payment. The fee may be waived if you meet qualifying direct deposit or account balance requirements.

Here’s how it works: Set aside up to 50% of your monthly rent in a MoneyLion Split Reserve account. You pay $0 out of pocket for rent on the first of the month. MoneyLion Split provides funds toward your rent payment, and you’ll use those funds to pay your landlord directly. You’ll repay the funds in two payments later in the month.

Can Reporting Rent Hurt Your Credit?

Reporting your rent can be a two-edged sword, depending on your payment history, what information gets reported and whether a scoring model counts it.

Pros:

• On-time rent can potentially improve your credit score if a model factors in rental history.

• Reporting rent can help you build credit history without opening a loan.

Cons:

• If reported, late or missed payments could hurt your score.

• Fees can add up with no guarantee of a higher score.

All in all, ask how the rent reporting service handles late payments — including past ones. It’s also wise to check your reports for accuracy once reporting starts.

Key Terms

• Credit bureau: One of the three nationwide consumer reporting agencies — Equifax, Experian and TransUnion — that collect the information used to build your credit reports.

• Credit report vs. credit score: Your credit report is the record of your credit history. Your score is a number calculated from that information that acts as a report card for how you handle credit.

• Rent reporting: The process of getting your rent payments added to one or more credit reports. It happens only when your landlord or a third-party service furnishes the data.

• Rent-reporting service: A company, such as Self or RentReporters, that verifies your rent payments and sends them to one or more credit bureaus, usually for a setup or monthly fee.

• FICO Score 9 and 10: Newer FICO scoring models that can factor in reported rental payments. Widely used older models, including FICO Score 8, do not.

• VantageScore 3.0 and 4.0: Scoring models that can use reported rent, utility and telecom payments when those appear on your credit file.

• Full-file vs. positive-only reporting: Full-file reporting sends both on-time and late or missed payments to the bureaus, while positive-only reporting sends on-time payments only.

• Payment history: Your track record of paying accounts on time. It's the biggest factor in most credit scores, which is why reporting on-time rent can help.

Sources

• Consumer Financial Protection Bureau: Does late rent affect my credit score?

• myFICO: How to Add Rent Payments to Your Credit Reports

• VantageScore: How To Build Your Credit

• FICO: Myth or Fact: Rental Payment Data Is Included in the FICO Score

Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.

Photo credit: dcsliminky / Getty Images / iStockphoto