Americans spend a lot of money on housing each month, but it’s likely those payments aren’t doing much to help their credit score. The age-old methods of paying rent—like using cash or checks—are still much more popular than paying online. But, if you jump on board with online payments, your credit score could benefit.
Paying rent online can increase your credit score, whether you have good credit or your score is not so great. In fact, it may have the biggest impact on lower scores. To put your rent to work for you, it’s important to make sure your payments are reported to the credit bureaus so they can see your excellent payment history. Pay that rent with a credit card, and you may see even more benefits. Here’s what you should know about how paying rent online can increase credit scores.
Let the Credit Bureaus Know You Pay On Time
Your rental payments don’t typically get reported to credit bureaus. That means that one of your biggest monthly expenses that you make sure is paid on time could go unnoticed.
Luckily, there is a way to make sure those timely payments are reported to credit bureaus. At Summerwood Apartment Homes, you can pay your rent online, and we’ll make sure the credit bureaus know all about it. Submit your rent through our 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.
Highlight Your Payment History
So, how exactly does submitting your rental payments to the credit bureaus help you? There are a few things that go into a credit score, including your history of making payments. Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
If you’re looking to increase your credit score, showing the credit bureaus that you pay your monthly rent can help. Each month, your punctual rent payments will be added to your payment history, so you can continue to build up a good track record.
Double Up 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.
Give your credit score a boost by paying your rent online through our resident portal. As you do so, your payments are reported to credit bureaus, showing them exactly what they are looking for. Plus, if you choose to pay rent with a credit card, you may increase your score even more. Happy credit-score-boosting!