If you’re looking for an easy way to boost your credit score, we have an easy solution: Paying rent online! In 2017, TransUnion studied 12,000 renters who reported their rent payments to credit bureaus over the course of a year. The study found that renters’ scores rose an average of 16 points within six months. Those who started with a credit score below 620 saw the greatest benefit from doing this. 

You can see a similar increase in your credit score by paying your rent online. Doing so ensures your payments are reported, shows credit bureaus what they are looking for, and can combine with credit card payments to increase your score even more. Let’s dive into how.

Report Your Rent Payments

While paying your rent alone will not necessarily help you build credit, reporting your rent payments can help you do just that. According to Bev O’Shea at NerdWallet, this is especially helpful if you are new to credit. 

So how can you report on your rent payments? At Le Med, we have an online rental payment system that automatically reports information to the credit bureaus. This gives credit bureaus easy and real-time access to your timely rental payments, which will then improve your credit score.

Show Credit Bureaus What They Are Looking For

There are several things that go into a credit score, and they are continuously updated with new information based on your activity. For example, Experian determines credit scores through the following elements:

  • Applications for new loans and credit
  • Use of credit cards
  • Payment history

When you pay rent online, those payments become part of your payment history, which can improve your credit score—especially as you pay on time and in full and continue to do so. The more on-time payments you have, the more your credit score will improve.

Combine with Credit Card Payments for Higher Score Gains

Using a credit card to pay your rent can improve your credit score even more. If you need a big boost to your score, this may be worth considering. 

Consider opening a credit card that you only use to pay your rent, then pay the credit card balance in full every month. According to LaToya Irby, credit expert for The Balance, “the timely credit card payments will help boost your credit score.”

It’s not necessary to pay your rent with a credit card, but it can be a nice little boost to your credit score in combination with the other benefits associated with paying your rent online.

At Le Med Apartment Homes, our residents can improve their credit scores by paying their 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!