Do you want a simple way to boost your credit score fast? Well, you’re in luck: Online rent payments can help you do just that! According to one case study from RentTrack, tenants who reported their rental payments saw a 59-point boost to their credit, and they saw it in less than two years.
If you’d like to see a similar increase in your credit score, try online rent payments. By paying your rent online, you ensure that your payments are reported, show credit bureaus what they are looking for, and can combine with credit card payments to increase your score even more. Here is how it works.
Shows Credit Bureaus What They Are Looking For
What even goes into a credit score? Experian, for example, determines credit scores through the following characteristics:
- Payment history
- Use of credit cards
- Applications for new loans and credit
How does paying rent online contribute to this? Well, when you pay rent online, those payments become part of your payment history. Then, as you continue to pay on time and in full, that becomes part of your score, too.
Ensures Your Payments Are Reported
On top of paying your rent in full and on time, you also have to report your rent payments. According to Bev O’Shea at NerdWallet, “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.”
It doesn’t have to be hard to make sure your payments are reported. At Solara Apartment Homes, we offer a payment system for paying rent online that reports information straight to the credit bureaus, allowing them to receive a record of your on-time rental payments. This contributes to your good credit.
Combines with Credit Card Payments for Higher Score Gains
To boost your score even more quickly, consider using a credit card to pay your rent. You could open a credit card solely for the purpose of paying your rent, then make sure to pay off that balance in full every single month. According to LaToya Irby from The Balance, “timely credit card payments will help boost your credit score.”
Using something other than a credit card to pay your rent won’t hurt your credit score. However, by using a credit card, you can give your score an extra little boost—especially in combination with the benefits of paying your rent online. Increase your credit score with online rent payments through our 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 could increase your score even more quickly. Good luck with your credit-score-boosting!