Rent is often a household's largest bill, but most landlords do not report it to credit bureaus. Some services now do, which can help or hurt your credit.
How it works
- A landlord or a third-party service reports on-time payments to one or more credit bureaus.
- Some services report only positive payments; others also report late ones.
- Not all scoring models use rent data.
Before you sign up
- Ask what is reported and to which bureaus.
- Check fees.
- Confirm whether late payments are reported.
- Make sure you can pay on time.
Keep your own records
Save receipts, bank statements and a payment ledger. They help correct errors and prove payment history to future landlords. See our guide to rent receipts.
If there is an error
- Request your credit reports.
- Dispute inaccurate items with the bureau and the reporting company.
- Send documents showing payment.
- Follow up in writing.
Terms to know
- Credit bureau: a company that collects credit information.
- Furnisher: a business that reports data to bureaus.
- Thin file: a limited credit history.
- Trade line: an account entry on a credit report.
- Credit utilization: how much of your credit limit you use.
- Alternative data: nontraditional information used for scoring.
Scenario
A renter with no credit cards pays $1,400 rent on time for two years. She signs up for a reporting service that sends the history to a bureau. When she applies for a car loan, the lender can see a payment history. The effect depends on the scoring model used, so she also opens a small credit-builder loan.
How different credit scores treat rent
Credit reports are built from information that lenders and other companies furnish to the bureaus. Because most landlords do not report, rent history is missing from many files. Some newer scoring models can use rent data when it is available, but many lenders still rely on older models that ignore it. That means rent reporting may help some borrowers and have little effect on others.
Ways rent gets reported
- The landlord or property manager reports directly to a bureau.
- A third-party rent reporting service, often paid by the tenant or landlord, collects payment data and reports it.
- Some services can add past months of rent, if documented.
- Payments by bank transfer are easier to verify than cash.
Risks to understand
- Late payments can be reported and lower your score if the service reports negative items.
- Fees can outweigh benefits for small improvements.
- Services vary in which bureaus they report to.
- Closing the service may remove the history.
Alternatives for building credit
- A secured credit card used lightly and paid in full.
- A credit-builder loan from a bank or credit union.
- Becoming an authorized user on a family member's account.
- Paying all bills on time and keeping balances low.
Checking and fixing your report
- Get your free credit reports from the official federal site.
- Look for rent entries and any errors.
- Dispute inaccurate items with the bureau and the furnisher.
- Keep proof of payment such as bank records and receipts. See our guide to rent receipts.
For landlords
Reporting can encourage on-time payment, but landlords should consider accuracy, tenant consent where required and credit reporting law obligations to correct errors.
Questions to ask a rent reporting service
- Which bureaus do you report to?
- Do you report late payments?
- What are the fees, and who pays?
- Can you add past rent history?
- What happens to the history if I cancel?
- How do I dispute errors?
What lenders look at beyond rent
- Length of credit history and mix of accounts.
- Credit utilization and payment history on cards and loans.
- Recent inquiries and new accounts.
- Public records and collections.
- Income and debt-to-income ratio for mortgages.
Planning to buy a home
Mortgage lenders review credit, income, assets and debts. Some lenders consider rent history when you have little credit, and some loan programs use alternative data. Ask a loan officer which records they accept, and keep proof of 12 months or more of on-time rent in case it helps.
Protecting yourself from scams
- Avoid services that promise instant credit repair.
- Do not share your Social Security number with unverified companies.
- Check reviews and complaints.
- Never pay for something you can get free, such as your credit reports.
Frequently asked questions
Does rent count toward my credit score?
Only if it is reported and your scoring model uses it.
Can a landlord report unpaid rent?
Collections and judgments for unpaid rent can appear on credit reports.
Does rent reporting cost money?
Some services charge fees.
Can I report rent if I pay a roommate?
Some services allow it with verification.
Will mortgage lenders see it?
Only if they use data including rent reporting.
Will rent reporting raise my credit score?
It may help if you have a thin file and make on-time payments, but results vary.
Can I report past rent?
Some services allow it with documentation.
Does eviction appear on credit reports?
Eviction filings may appear in screening reports, and unpaid rent in collections can appear on credit reports.
Is it free?
Some services charge fees. Compare options.
Does paying by credit card affect rent reporting?
Not directly, but card fees apply and card balances can affect your credit.
Can late rent hurt my credit?
Yes if reported or sent to collections.