Did you know that you can increase your credit score by paying rent online? In 2017, TransUnion studied 12,000 renters who reported their rent payments to credit bureaus over the course of a year. The study 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.
Paying rent online can be one of the easiest ways to increase your credit score! Let’s take a closer look at how this works.
Ensures Your Payments Are Reported
Paying rent online increases your credit score because it allows each of your monthly rent payments to be reported. “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 Lakewood Manor Apartments, we offer an online rental payment system that reports information to the credit bureaus. That way, credit bureaus receive a record of your on-time rental payments, which contributes to your good credit. This online payment system is conveniently available through the resident portal.
Shows Credit Bureaus What They Are Looking For
When you pay your rent online, it will also allow credit bureaus to receive all the information they need to boost your credit.
Your credit score is determined by a few key factors. Experian, for example, determines credit scores through the following:
- Use of credit cards
- Payment history
- Applications for new loans and credit
Your online rent will be recorded and added to your payment history. This way, when your rent is paid on time and in full, your payment history will improve! This is just what credit bureaus are looking for.
Combines with Credit Card Payments for Higher Score Gains
Online rent will also allow you to pay in a way that in-person payments can not. When rent is paid online, a credit card can be used to make the payments! This way, you have another opportunity to increase your credit score and gain additional benefits while paying your rent.
These small changes in the way you pay rent can make a big difference in your credit score. As you pay rent online, your payments are recorded so that they can contribute to your payment history. These payments can also be made with a credit card, increasing your credit score even more! Lakewood Manor Apartments wishes you the best of luck in increasing your credit—and if you live with us, it’s never been easier.