Improving your credit score doesn’t have to be hard or scary. Making a simple change like paying rent online can increase your score, and all you need to do is report on your payments. 

In 2017, TransUnion studied 12,000 renters who reported their rent payments to credit bureaus over the course of a year and found that renters’ scores rose an average of 16 points within six months. The benefit was greatest for those who started with a credit score below 620.

You can also see a similar increase in your credit score. Consider paying your rent online to show credit bureaus what they are looking for, ensure your payments are reported, and even combine with credit card payments to see more benefits. Here’s how it works.

Show Credit Bureaus What They Are Looking For

What goes into a credit score, anyway? Experian, for example, determines credit scores through the following elements:

  • Applications for new loans and credit
  • Use of credit cards
  • Payment history

Your online rental payments become part of your payment history. When you pay on time and in full and continue to do so, that becomes part of your score, too.

Ensure Your Payments Are Reported

Paying rent alone is not enough to build your credit score. However, according to Bev O’Shea, “reporting your rent payments can help you build credit—especially if you are new to credit or do not have a lot of experience using it.”

How do you make sure your rent payments are reported? It’s easier than it may seem. At Porto Bella Apartment Homes, we have an online rental payment system that reports information to the credit bureaus. That way, you don’t have to worry about reporting, and credit bureaus still receive a record of your on-time rental payments, which contributes to your good credit.

Combine with Credit Card Payments for Higher Score Gains

Opening and using a credit card solely for the purpose of paying your rent can help you increase your credit score even more. If you’re looking for an extra boost to your score, consider paying with a credit card. 

LaToya Irby, credit expert for The Balance, says opening a credit card, using it to pay your rent, and then paying that card balance in full every month “will help boost your credit score.” While you don’t have to pay your rent with a credit card, it can serve as a nice little boost to your credit score—especially in combination with the benefits of paying your rent online.

Increase your credit score by paying your rent online through our resident portal at Porto Bella. As you do so, credit bureaus see exactly what they are looking for as your payments are reported to them. Plus, if you choose to pay rent with a credit card, you may increase your score even more. Now, go boost that credit score!