Are you looking for an easy way to improve your credit score? Paying your rent online is a quick solution. By reporting online rental payments, renters were able to increase their credit score by an average of 59 points in 21 months, according to a study by RentTrack.
If you want to improve your credit score, start submitting your rent payments online. Here’s the lowdown on what goes into a credit score, why simply paying rent won’t help your credit score, and how paying with a credit card online will help improve your credit.
What Goes into a Credit Score?
What actually goes into a credit score, and does paying rent online contribute? Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
When you pay rent online, 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.
Will Paying Rent Increase a Credit Score?
Just paying your rent isn’t enough to improve your credit. First, the payment must be made online for it to count towards your credit score. At Artists Village Apartments, we have conveniently implemented a resident portal to make online payments easy.
After that, you must make sure your online payments are recognized by the credit bureaus and are calculated into your report. According to RentTrack, “It’s not possible to report information directly to the big three credit bureaus: TransUnion, Experian and Equifax.” Using a reporting agency such as RentTrack will make sure your payment is seen by credit bureaus.
Does It Help to Pay with a Credit Card?
To boost your score even more, using a credit card specifically to pay your rent may be something worth considering.
“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.”
You don’t have to pay your rent with a credit card, but it can be a nice little boost to your credit score in combination with the benefits of paying your rent online.
As you pay your rental payments online and make sure the rent gets reported to credit bureaus, you will see your credit score improve. At Artists Village, we have made this simple for our residents with our online rental setup in our resident portal. Happy credit-score-boosting!