THE NO JOB LIFESTYLEWhy rent usually does not count
Credit bureaus get their data from companies that choose to report. Reporting takes setup and cost, and many landlords, especially small ones, skip it. So you could pay rent on time for ten years and have nothing on your report to show for it.
The reverse can hurt, though. If you leave owing rent and the landlord sends the balance to a collector, that collection can appear on your report. Tenant screening reports are a separate record, which landlords use to check your rental history.
How to get rent reported
- Ask your landlord: larger property managers may already work with a service, and some report rent at no cost.
- Use a rent reporting service: you sign up, it verifies your payments, then it reports to one or more bureaus. Fees range from free to a modest monthly charge, and some charge a setup fee.
- Use a bill tool: Experian Boost can add eligible rent paid through your bank to your Experian file, at no charge.
- Ask about past rent: some services can add earlier history for an extra fee.
Check which bureaus receive the data, since a service reporting only to one will not change the other two reports.
Which scores use rent
FICO 9, FICO 10 and VantageScore 3.0 and 4.0 can factor in reported rent. FICO 8, still very common among lenders, generally does not count data from most rent reporting. There are also programs in mortgage lending, such as those from Fannie Mae and Freddie Mac, that can consider rent history you show from bank records. Ask your lender if that may apply to you.
This means rent reporting may help your score in one app, but not the one your auto lender pulls. We suggest treating it as one helpful layer.
Who gets the most from it
People with thin or no credit files often see the most benefit, because any on-time data gives the model something to read. Someone with a long file full of accounts may see little change. And if your rent history has late payments, think twice, because some services report those as well. Read the terms before you sign up.
If you pay a monthly fee, weigh it against a secured card with no annual fee, which costs little and reports widely. Many renters use both.
Steps to take this week
- Ask your landlord if rent is reported already.
- Check your free reports at AnnualCreditReport.com to see what appears.
- Compare costs and bureaus covered among two or three services.
- Pay rent through a traceable method, so that you have records.
Questions people ask
Can late rent hurt your credit?
Only if it is reported. Many landlords do not report late rent, but an unpaid balance sent to collections can appear on your report and may also affect future rental applications.
Do you need your landlord's approval?
Many services ask the landlord to verify payments, while others use your bank records. Your landlord's permission is usually only needed if the service must confirm the lease with them.
Is rent reporting worth paying for?
It can be useful for thin files and people who cannot get a card. Compare the yearly cost to free options before you commit.