Looking to increase your credit score? Don’t worry: Paying off a loan isn’t your only option. You can just pay rent online!
It may sound too simple, but check this out: 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.
Try paying your rent online and see what it does to your credit score. When you pay online,
your payments are reported, it shows credit bureaus what they are looking for, and it can combine with credit card payments to increase your score even more. Here’s how.
Send Your Payments to Credit Bureaus
Paying rent is a pretty simple way to increase your credit score! But how does it work?
“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.”
Okay, so you have to make sure your payments are recorded. But how? At The Lincoln on Grand, our online rental payment system reports information to the credit bureaus. Credit bureaus then receive a record of your on-time rental payments, contributing to your good credit.
Beef Up Your Payment History
Online rental payments help beef up your payment history—a crucial factor in determining your credit score. What exactly goes into a credit score? Experian, for one example, calculates credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
So, when you make an online rent payment, those payments become part of your payment history. As you pay on time and in full and continue to do so, that becomes part of your score, too.
Boost Your Score Even More
You probably already knew that paying off your credit card can boost your credit score, so here’s an idea to try: Get a credit card specifically for paying 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.”
Increase your credit score by paying your rent online through our online rent payment system. You’ll get your payments reported and look good to the credit bureaus. And if you use a credit card exclusively for rent, you may see even more of a boost. Best wishes in your journey towards the best credit score of your life!