Rent is one of the biggest monthly expenses for most people, yet it rarely helps build credit. Unlike mortgages, rent payments aren’t automatically reported to credit bureaus, making it harder for renters to boost their credit scores. Fortunately, several rent-reporting services now allow tenants to get credit for on-time rent payments.
This gap in reporting creates a frustrating situation. Landlords can send unpaid rent to collections, which damages your credit, but on-time payments typically go unnoticed. The good news is that some credit scoring models now factor in rent payments, and certain services can add this data to your credit report.
Is rent reporting worth it? The answer depends on which service you use and whether lenders rely on scoring models that consider rental history. Here’s what you need to know to make an informed decision.
How Rent Payments Affect Your Credit Score
While landlords don’t report your monthly rent payments to the three major credit bureaus, you can still get credit for on-time rent through third-party reporting services. These services work by collecting your rental payment data and sending it to one or more of the three credit bureaus.
Experian RentBureau and TransUnion SmartMove are two options that add rental payment information directly to your credit report. However, just as on-time payments may improve your credit, late or missed payments could have a negative impact—especially if your landlord reports them to collections. Some services do not report late rent at all, while others may only report payments that are more than 30 days overdue.
Newer credit scoring models like FICO 9, FICO XD, and VantageScore include rent payments in their calculations. Yet, many lenders still use older models like FICO 8, which don’t consider this data. This means that while reporting rent can help, it might not significantly affect your credit score unless your lender uses an updated model.
If you’re looking to improve your credit score, using a rent reporting service could give you a boost—especially if you choose one that reports to all three credit bureaus. Just be aware that this method is more effective with lenders who adopt the latest scoring models.
How Credit Scoring Models Handle Rent Payments
Not all credit scoring models consider rent payments, so the impact of rent reporting depends on which model a lender uses.
Credit Scoring Models That Include Rent Payments
- FICO 9 & FICO 10: These models factor in rental payments if they’re included in your credit report. Some banks and credit unions have adopted these newer versions, but most major lenders still rely on older FICO models.
- FICO XD: Designed for people with little or no credit history, this model includes rent, utility, and phone bill payments. It’s mainly used by alternative lenders.
- VantageScore 3.0 & 4.0: Both models consider rent payments, and some credit card issuers and personal loan providers use them. However, they are far less common among mortgage lenders.
Why Rent Reporting Won’t Help With a Mortgage
Most mortgage lenders still use FICO 8 or older versions, which do not include rent payments. This means that even if rent payments appear on your credit report, they won’t factor into your mortgage application unless the lender specifically considers alternative data.
Lenders That May Consider Rent Payments
While mortgage lenders typically ignore rent data, some financial institutions use models that do:
- Some credit unions and fintech lenders rely on FICO 9 and VantageScore 4.0, making rent reporting useful for personal loans or credit card applications.
- Certain auto loan providers may accept FICO 9, though many still prefer older models.
- Credit-building lenders and some secured credit card issuers consider rent payments as part of alternative credit evaluations.
If you’re aiming for a mortgage, rent reporting won’t make a difference. But if you’re applying for a credit card or personal loan with a lender that uses FICO 9 or VantageScore 4.0, rent payments could help strengthen your credit profile.
What is a rent reporting service?
Individuals can’t report rent payments to credit bureaus directly, so rent reporting companies handle this process on their behalf. These third-party services collect your payment data, verify it with your landlord or property manager, and submit it to one or more of the three credit bureaus.
Most rent-reporting services charge a fee, and not all of them report to all three bureaus. Some require your landlord to participate, while others allow you to sign up on your own.
While rent reporting can help build credit with certain scoring models, it’s not a guarantee that lenders will use that data when evaluating your creditworthiness. If you’re considering a rent-reporting service, it’s important to check which credit bureaus they report to and whether your target lenders actually factor rent into their credit decisions.
Rent Reporting Services
There are countless rent reporting services that report your rent payment data to the credit bureaus. Each one has separate fees, and some may only report rental payments to one or two credit bureaus. Still, others may require your landlord or property manager to sign up for the service. Take the time to do a bit of research on each one and then select the right option for you.
RentTrack
RentTrack allows renters to report their monthly payments to all three major credit bureaus: Experian, TransUnion, and Equifax. This can help build your credit history using the payments you’re already making.
How It Works:
- Payment Methods: You can pay your rent through RentTrack using e-check or credit/debit card.
- Fees: The service charges a monthly subscription fee, which is displayed on your RentTrack main page under “Start Reporting Your Rent.” You can cancel your subscription at any time.
- Landlord Participation: If your property manager uses RentTrack, you might not have to pay for the service. If not, you can still sign up independently.
By consistently paying your rent on time through RentTrack, you can establish a positive credit history, which may improve your credit score over time.
Rental Kharma
Rental Kharma reports your rent payments to TransUnion and Equifax, helping you build credit with your rental history.
How It Works:
- Enrollment: Sign up online and provide your rental details.
- Verification: Rental Kharma verifies your rental payments with your landlord, property manager, or even a family member if you’re renting from them.
- Reporting: Once verified, your rental payments are reported to TransUnion and Equifax.
Fees:
- Setup: A one-time fee of $75, which includes reporting all past rental history at your current address.
- Monthly: $8.95 per month for ongoing reporting, starting 30 days after setup.
Additional Features:
- Past Rent Reporting: You can add up to two years of past rental payments to your credit report.
- Spouse or Roommate: Add a spouse or roommate for a one-time fee of $25 and an additional $5 per month.
ClearNow
ClearNow is an online rent payment service that enables tenants to build credit by reporting their rent payments to Experian RentBureau.
How It Works:
- Landlord Enrollment: Your landlord or property manager must sign up for ClearNow.
- Automatic Payments: Once enrolled, your rent is automatically debited from your bank account on a predetermined date and deposited into your landlord’s account.
- Credit Reporting: After making four consecutive on-time payments, you can opt in to have your payment history reported to Experian RentBureau at no additional cost.
Fees:
- Tenant Cost: There is no cost to tenants for using ClearNow; fees are paid by landlords.
Additional Features:
- Opt-Out Flexibility: Tenants can unenroll or stop payments if necessary by contacting ClearNow or their landlord.
PayYourRent
PayYourRent enables tenants to pay rent online and build credit by reporting payments to all three major credit bureaus: Experian, TransUnion, and Equifax.
How It Works:
- Landlord Participation: Your property manager or landlord must be enrolled in PayYourRent. If they’re not, you can provide their contact information, and PayYourRent will reach out to encourage participation.
- Payment Methods: Once set up, you can pay your rent online or through PayYourRent’s mobile app using various methods, including bank transfers, credit cards, or debit cards.
- Credit Reporting: After opting in, your on-time rent payments are reported to Experian, TransUnion, and Equifax, helping to build your credit history.
Fees:
- Transaction Fees: The cost of using PayYourRent can be covered by either you or your property manager, depending on your building’s specific agreement. Typically, there’s a 2.75% fee per transaction.
Additional Features:
Opt-In Flexibility: You can choose to opt in or out of rent reporting at any time, giving you control over your credit-building process.
Zego
Zego offers a rent payment platform that reports on-time rent payments to Experian and TransUnion, helping tenants build their credit history.
How It Works:
- Landlord Participation: Your property manager must be enrolled in Zego’s platform. If they are, you can opt in to have your rent payments reported to the credit bureaus.
- Payment Methods: Pay your rent online through Zego’s system using various methods, including bank transfers, credit cards, or debit cards.
- Credit Reporting: Once enrolled and opted in, your on-time rent payments are reported to Experian and TransUnion, contributing to your credit history.
Fees:
- Cost to Residents: There is no charge to the property management company or the resident for utilizing the Credit Reporting service.
Additional Features:
Opt-In Flexibility: Residents can opt in to the service when they make an online payment using Zego. Once they opt in and provide the necessary information, Zego will report all of their on-time rent payments to Experian and TransUnion. Residents can opt out of the service at any time.
Rent Reporters
RentReporters helps tenants build their credit by reporting rent payments to TransUnion and Equifax.
How It Works:
- Enrollment: Sign up online and provide your rental information. RentReporters will contact your landlord to verify your rent payments.
- Credit Reporting: Once verified, your rent payment history is reported to TransUnion and Equifax, which can help improve your credit score.
Fees:
- Setup: A one-time fee of $94.95, which includes reporting up to two years of past rental payments.
- Monthly: $9.95 per month for ongoing reporting.
Additional Features:
Money-Back Guarantee: If you’re not satisfied with the results, you can request a refund within seven days of being notified that your updated credit score has posted.
Spouse or Roommate: Add a spouse or roommate for a one-time fee of $50.
Rent Reporting Services Comparison
Not all rent reporting services work the same way. Some report to all three major credit bureaus, while others only report to one or two. Fees vary, and certain services require landlord participation. Below is a comparison to help you choose the best option for your needs.
| Service | Bureaus Reported To | Fees | Past Rent Reporting | Landlord Required? |
|---|---|---|---|---|
| RentTrack | Experian, Equifax, TransUnion | $2.95/month (e-check) or 2.95% (credit/debit) | Up to 24 months | No |
| Rental Kharma | TransUnion, Equifax | $75 one-time + $8.95/month | Up to 24 months | No |
| ClearNow | Experian | Included with landlord participation | Not available | Yes |
| PayYourRent | Experian, TransUnion, Equifax | 2.75% per transaction | Not available | Yes |
| Zego | Experian, TransUnion | Free (if property manager uses Zego) | Not available | Yes |
| Rent Reporters | TransUnion, Equifax | $94.95 one-time + $9.95/month | Up to 24 months | No |
How to Choose a Rent-Reporting Service
Start by checking if your property manager already uses a rent-reporting service. If they don’t, consider these factors when choosing one:
- Reputation and reliability – Look for customer reviews and testimonials to ensure the service delivers on its promises.
- Credit bureau coverage – Some services report to only one or two bureaus, while others report to all three (Experian, Equifax, and TransUnion).
- Cost and fees – Compare pricing structures, including setup fees, monthly charges, and transaction fees, to find the best value.
- Payment flexibility – Some services require a lump-sum payment, while others offer monthly plans. Choose one that fits your budget.
- Terms and conditions – Read the fine print to understand how payments are reported, refund policies, and any potential risks.
Is rent reporting right for you?
Rent reporting can help improve your credit, but it’s not the right choice for everyone. Consider whether it makes sense based on your financial situation and credit goals.
Who Should Use Rent Reporting
- People with little or no credit history – If you have a thin credit file, reporting rent payments can establish a positive payment history.
- Renters looking to boost their credit score before applying for a loan – If your lender uses FICO 9 or VantageScore 3.0 or 4.0, rent payments could strengthen your application.
- Those who always pay rent on time – Consistently reported on-time payments can help improve your credit profile.
Who Might Not Benefit
- If lenders you plan to apply with don’t use a scoring model that includes rent payments – Most mortgage lenders still use FICO 8, which doesn’t factor in rent.
- If you already have a strong credit history – If you’ve built credit through credit cards, loans, or utility bills, rent reporting may have little impact.
- If the fees outweigh the potential score increase – Some services charge setup and monthly fees, so weigh the cost against the benefit.
What about paying rent with a credit card?
Some rent-reporting services allow you to pay rent with a credit card, but transaction fees can add up quickly. If you’re using a rewards credit card, check whether the points or cash back you earn outweigh the processing fees.
Final Thoughts
Rent reporting can be a useful tool for building credit, but its impact depends on whether lenders actually consider rent payments when evaluating creditworthiness. Services that report to all three bureaus, such as RentTrack and PayYourRent, offer the most potential benefit, while others may have limited reach. Fees also vary, making it essential to compare costs before committing to a service.
If you’re planning to apply for a loan, check which credit model your lender uses. While FICO 9 and VantageScore include rent payments, many lenders, particularly mortgage providers, still rely on FICO 8, which does not. If rent reporting aligns with your financial goals, selecting the right service can help turn your rent payments into a valuable credit-building tool. Just make sure the benefits outweigh the costs based on your situation.
