Should Your Rent Payments be Reported to the Credit Bureaus?

Did you know that reporting your rent payments to the three major credit bureaus—Equifax, Experian, and TransUnion—can help build your credit history? By ensuring that your on-time rent payments are included in your credit report, you can potentially improve your credit score over time. Take advantage of this opportunity to strengthen your financial profile while enjoying the benefits of timely rent payments.

Here are a few options available to tenants to facilitate reporting your rent payments to the credit bureaus: 

RentReporters believes you deserve to have your responsible rent payment history recognized, just like the 100 million other renters and the 45 million who currently lack a credit score. By ensuring your rental payments are accurately reflected in your credit score, you gain access to the financial opportunities you rightfully deserve.

Piñata offers a complimentary service to renters regardless of their landlord. It reports exclusively to TransUnion. If your landlord opts for a designated partnership with Piñata, your rental payments could be reported to all three major credit bureaus.

There are a slew of platforms available to landlords that will report your rent payments to the credit bureaus. Don’t hesitate to ask your landlord about these platforms. It may be something they have never considered offering before, and it never hurts to ask! 

1. Rent Dynamics: Entrata acquired Rent Dynamics, which is a service aimed at multifamily landlords and property owners and is part of the Positive Rent Payment pilot program. It reports on-time utility bills to all three credit bureaus and can retrieve up to 24 months of payment history. 

2. Esusu: This service reports your rental payments to all three major credit bureaus. It’s free to you as a renter if your landlord has a service agreement, which is also available through the Positive Rent Payment program. Esusu sends an enrollment email to renters to initiate the setup.

3. ClearNow: This service debits your rent from your checking or savings account. You have no cost as a tenant, but your landlord must be signed up. If you opt-in, payments are reported to Experian.

4. Bilt Rewards: This program lets renters at participating Bilt Alliance properties earn rewards by reporting their rent through the app for free. This service is optional; renters should receive an invitation when they move in. Renters who do not live in one of these properties can still earn by using the Bilt Mastercard. Renters can earn points to go toward future rent payments, shopping, and more, or they can transfer points to airlines and hotels. Benefits accrue based on tier status, ranging from blue to platinum. The service reports rent to the three major bureaus.

5. Azibo: Landlords must sign up, and then they and tenants can both use the service to make free ACH bank transfer payments. However, tenants paying rent by debit or credit card face a 2.99% convenience fee. Renters can also sign up for Azibo's Credit Boost program for $4.99 a month; the program reports on-time rent payments to all three credit bureaus on its platform.

6. PayYourRent: Fees are paid by landlords or management. PayYourRent reports to all three credit bureaus. Residents can opt in or out at any time.

7. Jetty Credit: Also part of Fannie Mae's pilot program, Jetty is free to renters who live at participating properties. It reports rental payments to all three credit bureaus, and tenants are automatically enrolled. Jetty offers renters insurance as well.

There is always a chance your landlord will not be willing to sign up for one of the abovementioned programs. Don’t despair, though! In addition to the first two free platforms mentioned above, there are also paid platforms. Your landlord might need to authenticate your rent payments; certain services may be unable to report your payments if your landlord refuses to verify them. Again, it never hurts to ask! 

1. Rock the Score: An enrollment fee of $48 is required, with ongoing service costs at $6.95 per month. Additionally, there's a $65 fee for reporting up to two years of rental history. Rock the Score provides reports to both TransUnion and Equifax.

2. PaymentReport: Users can opt for a free plan that requires landlord verification or a $2.95 per month plan that doesn't necessitate landlord involvement, but renters must link a bank account to verify payments. PaymentReport exclusively reports to Equifax.

3. Self: Renters can access reports of their cell phone, utility payments, and rent for a monthly fee of $6.95. Rent payments are reported to all three bureaus, while utility payments are reported only to TransUnion. Additionally, users can request a look-back of up to 24 months on their current lease for a one-time fee of $49.95.

4. Boom: An enrollment fee of $10 and a monthly fee of $2 grant users access to rent reporting across all three credit bureaus. Additionally, users can access up to 24 months of past payment history for a one-time fee of $25.

5. Rent Reporters: A one-time enrollment fee of $94.95 covers up to two years of reported rental payments. Users can then choose between a monthly plan at $9.95 per month or an annual plan at $7.95 per month. Rent Reporters reports to both TransUnion and Equifax.

6. Rental Kharma: Initial setup costs $75, with a subsequent monthly service fee of $8.95. Reports encompass all past history at the current address. Users have the option to include roommates or spouses for a one-time fee of $25 and an additional $5 per month. Rental Kharma reports to both TransUnion and Equifax.

With all of that information, how do you even begin to choose which platform would work best for you? 

If your landlord isn’t already participating in a rent-reporting platform, here are some key questions to ask rent-reporting service providers before making a decision:

• What are the total costs for a year of service, including setup fees and fees for reporting rental history? (Certain services can report rental history for up to 24 months.)
• How is my personal data protected?
• Which major credit bureaus do you report to? (Reporting to all three is preferable.)
• Do you offer free access to credit scores, and if so, which score(s)?
• How soon can I expect the information to appear on my credit report?
• What is the process for canceling the service?
• What happens in the event of a dispute with my landlord or if I break my lease? In some states, renters have the right to withhold payment if the landlord fails to maintain the unit in a habitable condition. Determine whether rent withheld during a dispute is reported as nonpayment or a negative mark.

Reporting your rent payments to the three major credit bureaus can significantly impact your credit history and potentially improve your credit score over time. Take advantage of the various rent-reporting platforms available to tenants, such as RentReporters, Piñata, and several others. While some services are free to tenants, others may involve a fee. It's essential to communicate with your landlord about these options and inquire if they're willing to participate. If your landlord isn't already involved in a rent-reporting platform, ask pertinent questions to the service providers to ensure you select the one that best suits your needs. Ultimately, by proactively reporting your rent payments, you can enhance your financial profile and access better opportunities in the future.