Is building credit on your mind? We understand; your credit score can impact everything from the loans you can secure to the jobs for which you’ll be considered. Fortunately, we have a fix: Simply pay monthly rent online to easily boost your credit score and put that stress to rest!
In a 2017 study of renters, TransUnion tracked 12,000 individuals who reported their rent payments to the credit bureaus for a year. The result? On average, renters raised their credit score by 16 points within six months! Those with scores below 620 saw the greatest boost to their credit score.
If you’re on a quest to build credit, try paying your rent online! Doing so reports your rent payments to the credit bureaus, offers credit bureaus valuable information, and can be used with credit card payments to gain more. Here’s how.
Offers Credit Bureaus Valuable Information
Let’s start by establishing what goes into creating a credit score. The major credit bureaus use similar approaches when calculating your score. 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, this builds out your payment history. As you pay on-time and in-full and continue to do so each month, that valuable information becomes part of your score, too.
Reports Your Rent Payments to the Credit Bureaus
“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.”
So how do you ensure that your payments are reported to the credit bureaus? At The Parsons Apartment Homes, our rental payment system takes care of that for you. Each on-time rent payment will help boost your credit score! 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.
Use with Credit Card Payments to Gain More
To boost your score even more, you may want to consider using a credit card to pay your rent. “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.” You don’t have to pay your rent with a credit card, but it can be a nice little boost to your credit score in combination with the benefits of paying your rent online.
Building credit doesn’t have to be stressful! Give your credit score a boost by paying your rent online through the resident portal. As you do so, it reports your rent payments to the credit bureaus, offering them valuable information about your credit. Plus, if you use the resident portal with credit card payments, you may gain even more points. Happy credit-score-boosting!