Rent payments are rarely reported to the three major credit bureaus Equifax, Experian, and TransUnion. However, if you don't have a very good credit history, but you do have a good payment history for your rent, it is likely that you will want to find a way to have this information show up on your credit reports and help to improve your credit scores.
So, how can you do this?
You cannot report your rental payments yourself, but there are several rent-reporting services available that can do this for you. However, the costs for this kind of service may vary. Some of these services are free of charge while others may charge up to $100 a year if not more.
Questions to Ask a Rent Reporting Service
If you are considering the services of a rent reporting company to help your credit history, there are a few questions you should ask the next time you pay the rent on your apartment and want it reported.
- What are the total yearly costs for this service? Are there setup fees involved and can you report the previous
- apartment rental history as well?
- How is my personal data protected?
- Which of the three major credit bureaus will you be reporting to?
- Can I cancel the service at any time without any consequences?
- How soon will the information be available on my credit reports?
Rent Reporting Versus Credit Building
In addition to rent reporting, other credit building strategies can be employed if you are a renter looking to improve your credit history and credit scores. Credit accounts remain one of the best and most traditional ways to build credit which can ultimately help you when it comes time to apply for a new apartment.
When you use credit accounts wisely, you can find the best rates and terms. However, if you plan on renting again, then having your rental payments reported while you take the more traditional way of building credit with credit accounts are all good steps to take.
So, whether you are currently renting your apartment or plan on renting in the future, you should seriously consider how beneficial it may be for you and your score to have those rental payments reported to the three major credit bureaus.
If you need help finding your next apartment, contact us at Lockwood Residential today to review some options available to you.