If you’re searching for ways to improve your credit score, you may have discovered the idea of paying rent online. You probably wondered, “Can something that simple really help me build my credit?” Believe it or not, it can! While it may seem like improving your credit score is difficult and intimidating, it doesn’t have to be. According to one case study from RentTrack, tenants who reported their rental payments saw a 59-point boost to their credit in less than two years.
Want to see a similar increase in your credit score? Consider paying rent online! Doing so can combine with credit card payments to increase your score even more, ensure your payments are reported, and show credit bureaus exactly what they are looking for. Let’s dive into how this works.
Can Combine with Credit Card Payments for Higher Score Gains
Did you know you can boost your score even more by paying your rent with a credit card? If this is something you’re interested in, it may be 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. By paying your credit card payments on time, this will help you increase your credit score even more.
It’s not necessary to pay your rent with a credit card. However, it can be a nice little boost to your credit score, especially in combination with the other benefits associated with paying rent online.
Ensure Your Payments Are Reported
You need to do more than simply pay your rent to build your credit. According to NerdWallet’s 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.”
If you need to report on your rent payments to see the benefits, how do you make sure your rent payments are reported? At Serena Vista Apartment Homes, we offer an 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.
Show Credit Bureaus What They Need
There are several things that go into a credit score. Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
So, what does this have to do with paying rent online? Well, when you pay rent online, those payments become part of your payment history. As you continue to pay on time and in full, that becomes part of your score, too.
Increase your credit score by paying your rent online through the 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!