Improving your credit score seems like a daunting task, but paying rent online is an easy way to give yourself a quick boost. According to a 2017 study by TransUnion, renters were able to raise their credit score by an average of 16 points when they reported their rent payments to credit bureaus. The rewards were greatest for those with a credit score of 620 or lower.
Paying rent online can ensure you a better credit score as it makes sure your payments are reported and shows the credit bureaus what they are looking for. You can even use a credit card to make these payments more worth your while.
Ensures Your Payments Are Reported
“Simply paying your rent will not help you build credit,” says Bev O’Shea at NerdWallet. “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.”
You may be wondering how to make sure your payments are reported. At The Evergreens, we make the process easy. All you have to do is pay through our online payment system and opt in for the credit reporting. In order to opt in, follow these steps:
- Log in to your account through the resident portal and click on “Make a Payment Now.”
- Select “Build your credit history by opting in to credit reporting.”
- Enter your information in the credit reporting fields. Be sure to select “yes” for month-to-month lease if you have one, or select “no” and a lease end date.
Shows Credit Bureaus What They Are Looking For
Knowing what goes into a credit score helps when trying to build credit. Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
When you pay rent online, those payments become part of your payment history. As you pay on time and in full and continue to do so, that becomes part of your score, too.
Combines with Credit Card Payments for Higher Score Gains
Utilizing a credit card while paying rent online is another way you can build credit. Consider boosting your credit score a little extra this month by charging a credit card and making a full and timely payment.
“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. “The timely credit card payments will help boost your credit score.”
Using a credit card is not required, of course, but it’s always an option when you’re paying rent online through the resident portal.
Keep showing credit companies exactly what they want to see by paying online and on time. Plus, if you choose to pay rent with a credit card, you may increase your score even more. Enjoy your new credit score!