The Secret to Building Your Credit Score: Paying Rent Online
Why is it so important to have a good credit score? Well, according to Experian , a good credit score can help you access the best credit cards, get the lowest interest on loans, get insurance discounts, and get approved for housing rentals.
But how do you improve your credit score? Well, it is much easier than you may think! Paying rent online is a simple and effective way to boost your credit score! Here’s how it works.
Paying Rent Online
Paying rent online helps to boost your credit score because it keeps a record of your payments, allowing them to be reported. “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.”
At The Parsons Apartment Homes , we offer an online rental payment system that reports information to the credit bureaus. This way, your payments will actually be contributed towards your credit score! We make this easy for you through our online resident portal . No need to write a check or come to our office; simply log into the portal to make your payment!
Reporting to Credit Bureaus
So how does this directly affect your credit score? Well, there are a few key components that factor into your credit score. Experian, for example, determines credit scores through the following elements :
- Use of credit cards
- Payment history
- Applications for new loans and credit
These online rent payments will contribute to your payment history. The longer you pay rent online, on time, and in full, the better it will look on your payment history!
Paying with Your Credit Card
Finally, you can boost your credit score even more by using a credit card to make your online payments. LaToya Irby, credit expert for The Balance , advises, “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.”
This is another simple way that you can establish and build credit while making your regular monthly payments. If you’re paying it anyway, you might as well gain the benefits associated with using a credit card!
We hope you find these simple, credit-boosting tips beneficial! As you pay rent online, your payment will contribute to your credit score and payment history! Plus, you can get additional benefits by using a credit card while you’re at it! Happy credit-score-boosting!
