Today, many rental companies make it easy to pay rent online, but did you know it can also improve your credit? According to a 2017 study of 12,000 renters by TransUnion, renters who reported their rent payments to credit bureaus were able to improve their credit score by an average of 16 points within six months. Those with credit scores below 620 benefited the most from doing so.
The easiest way to make sure your rent payment is reported to credit bureaus is to pay rent online. Doing this, in addition to making credit card payments, can boost your credit score significantly. Here’s how it works.
Ensures Your Payments Are Reported
The key to improving your credit by paying your rent is to make sure your payments are being reported to credit bureaus. According to Bev O’Shea at NerdWallet, “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.”
At Cantabria, we offer a web payment system that does the work for you. You pay rent online, and we make sure credit bureaus receive a record of your on-time rental payments. In order to opt in for the credit reporting, 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 credit bureaus are looking for helps you understand how to improve your credit. Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
Online rent payments go towards a positive payment history. Pay your rent online to build a record of payments made on-time and in full.
Combines with Credit Card Payments for Higher Score Gains
Take full advantage of the benefits of online rent payments by using a credit card. According to LaToya Irby, credit expert for The Balance, “Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month. The timely credit card payments will help boost your credit score.”
By using a credit card and being diligent in paying the balance in full each month, you can make significant progress in building your credit. Why not embrace the opportunity to make a huge impact on your credit?
When you do want to pay rent online, you can do it through the resident portal. Log in every month to reap the rewards of paying rent online. Don’t forget to consider using a credit card to boost your credit score even more. Happy credit building