How to Report Your Rent to Credit Bureaus
Rent-reporting services can get payments added to your credit reports, which may help build credit. A lot of people who don’t have much of a credit history do have a history of paying rent on time. But that information doesn't show up on their credit reports and doesn't help their credit scores. You can’t report rent payments yourself. But rent-reporting services can get your credit reports to reflect your rent payments fairly easily, although the cost can depend on the service — some are free and some cost renters or landlords a fee. To use a rent-reporting service effectively, you’ll need to know which credit bureaus it will report your payments to — and which credit scores take those payments into account. It's important to understand that this may not be the most cost-effective way for you to build your credit with all three credit bureaus, and there are alternatives. Do rent payments affect credit?All three major credit bureaus — Equifax, Experian and TransUnion — will include rent payment information in credit reports if they receive it. Credit reports, in turn, provide the data that goes into your credit scores. The two major credit scoring companies, FICO and VantageScore, vary in how they handle rent payment information:
Positive Rent Payment pilot programFannie Mae launched a pilot program in September 2022 with the goal of helping renters build their credit history and grow their credit scores. The Positive Rent Payment program links Fannie Mae-financed owners of multifamily properties with three vendors — Esusu, Jetty and Rent Dynamics — to allow landlords to report tenants' on-time rent payments to credit bureaus for one year. Fannie Mae will reimburse the vendors, and no costs will passed along to renters. Fannie Mae says it hopes that rent reporting will motivate more on-time payments, help renters find housing in a wider range of neighborhoods, and possibly reduce the amount they’ll have to put down as a security deposit on future rentals. The focus of this program is on Black and Latino communities, which are disproportionately represented among those with little or no credit profile. Free services
Know how your credit is scored See your free score and the factors that influence it, plus insights into ways to keep building. GET STARTEDDoes paying rent build credit?Simply paying your rent will not help you build credit. But 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. Having rental payment information in your credit report can be useful if you rent again in the future. Landlords prefer tenants who can show a history of paying on time. But other strategies to build credit are more efficient than rent reporting because they influence all types of credit scores and usually report to all three credit bureaus. They also can cost less or, in the case of being an authorized user, nothing at all.
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