Arizona Tribune - How Paying Rent Can Help Build Credit History

What Are Rent Reporting Services?

The three major credit bureaus will include rent payments in credit reports, but most landlords don't report rent payments (since they're not legally required to). These days, third-party companies track and report your monthly payments to credit bureaus for a fee. These services bridge the gap between renters and credit agencies, allowing tenants to gain credit-building benefits from their monthly housing expenses.

How Does Rent Reporting Work?

There are two primary ways to report rent payments: you can report your rent payments directly to a service or your landlord can handle it.

Reporting Rent Payments Yourself

If your landlord does not participate in a rent reporting program, you can sign up for a rent reporting service independently. Rent reporting companies allow you to register and link your bank account or rental payments so that your on-time payments are recorded with one or more credit bureaus. Bear in mind that reporting companies may require renters to make online rent payments, or some may have a minimum monthly rent payment. They'll also typically charge you a fee, though you may be able to find a free service. Find and compare different services and their specific requirements to discover your best fit.

Having Your Landlord or Property Manager Report Rent Payments

Some landlords and property management companies work with rent reporting services to automatically report tenants' payments. If your landlord offers this option, you may not need to take any additional steps. Talk to your landlord or property manager to confirm that they report to the major credit bureaus.

What to Know About Rent Reporting

Here are a few things to keep in mind before signing up for a rent reporting service.

• Fees: Some rent reporting services charge a monthly or one-time fee, while others are free. You may find that fees vary based on how many credit bureaus the service reports to and how many additional features they offer. For example, some rent reporting services may also report utility payments to credit bureaus.

• Eligibility: Not all rental agreements qualify for rent reporting. Some services require a formal lease agreement, while others accept month-to-month arrangements. Some services may report online/digital payments only.

• Bureau reporting options: Some rent reporting services may report your payments to just one or two of the three major credit bureaus. Some may charge an additional fee to report your payments to all three bureaus. Compare your options before making a choice.

Rent reporting can be a simple way to build credit, especially if you have a limited credit history. It's a great way to build credit without taking on debt. However, it's important to consider the fees involved and whether the cost is worth it. For some renters, it may be best to look for free rent reporting services or ask your property manager to report payment directly.

Disclaimer: This content is sponsored by myFICO and is provided for informational purposes only. The information shared here is not intended to serve as financial, legal, or credit-related advice. Readers are encouraged to consult with their personal financial advisors or credit professionals to assess their specific situation. To learn more about myFICO's services, including credit scores and monitoring tools, please visit the myFICO website or reach out to a myFICO representative.

CONTACT:
Sonakshi Murze
Manager
[email protected]

SOURCE: iQuanti

View the original press release on ACCESS Newswire

E.Flores--AT