Paying Rent Online to Boost Your Credit
Could your credit use a boost? You aren’t alone; Experian estimates that 30 percent of Americans have poor or bad credit (i.e., a score lower than 601). Fortunately, paying rent online is a proven fix—and one that’s easy to do. According to a 2017 study by TransUnion, renters who included their rent payments to credit bureaus saw an average credit score increase of 16 points within six months. Those with a credit score below 620 saw the greatest benefit.
Sound too good to be true? Try paying rent online to see for yourself. You’ll see your payments reported to bureaus automatically, they’ll find exactly what they’re looking for, and, if you used a credit card to make your payment, you’ll see your score go up even more!
Your Payments Are Reported Automatically
In order for your credit score to improve, the credit bureaus need to know what you’re doing with your money. “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.”
At Villa Del Sol, we take care of the reporting for you. Our online rental payment system reports your payment information to the credit bureaus directly. When you make a payment on time, the credit bureaus know about it, helping your credit go up. In order to opt in for the credit reporting, follow these steps:
- Log in to your account through the resident portal and click on “Make a Payment Now.”
- Select “Build your credit history by opting in to credit reporting.”
- Enter your information in the credit reporting fields. Be sure to select “yes” for month-to-month lease if you have one, or select “no” and a lease end date.
Credit Bureaus Find Exactly What They Are Looking For
When credit bureaus are determining your credit score, they’re looking for specific information. For example, Experian determines credit scores using the following information:
- Use of credit cards
- Payment history
- Applications for new loans and credit
By paying rent online, your payments become part of your payment history. As you continue to make those payments and do so on time and in full, your score goes up.
Credit Card Payments Combine with Your Rent Payments for a Higher Score
Want to boost your score even more? Use a credit card 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.”
If your credit score isn’t where you want it to be, take action by paying rent online. Our resident portal makes doing so quick and easy. You’ll see your payments reported to bureaus automatically, they’ll find exactly what they’re looking for, and, if you used a credit card to make your payment, you’ll see your score go up even more! So here’s to a brighter future with higher credit!