Are you searching for a simple way to improve your credit score? You’re in luck! Online rent payment can help you do just that. One RentTrack study found that tenants who reported on their on-time rent payments saw an average increase of 59 points to their credit score in less than two years.
To see a similar increase in your credit score, consider paying your rent online. Doing so ensures your payments are reported, can combine with credit card payments to increase your score even more, and shows credit bureaus what they are looking for. Let’s dive into how online rent payments are an easy way to build your credit score.
Ensures Your Payments Are 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.”
How can you ensure your rent payments are reported? At Park Del Amo Apartment Homes, we offer an online rental payment system that automatically reports information to the credit bureaus. That way, credit bureaus always receive a record of your on-time rental payments. This makes sure your payments contribute to your good credit.
Combines with Credit Card Payments for Higher Score Gains
To boost your score even more, consider using a credit card specifically to pay your rent. This can lead to an even greater increase.
Consider opening a credit card solely for the purpose of paying your rent. “The timely credit card payments will help boost your credit score,” says LaToya Irby, credit expert for The Balance.
You don’t have to pay your rent with a credit card. However, in combination with the other benefits of online rent payments, it can be a nice little boost to your credit score.
Shows Credit Bureaus What They Are Looking For
What actually goes into a credit score, and does paying rent online contribute? 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, those payments become part of your payment history. As you pay on time and in full and continue to do so, that becomes part of your score, too.
At Park Del Amo, we make improving your credit score a cinch for our residents. Give your credit score a boost by paying your rent online through the 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 may increase your score even more. Now that you know all the tips and tricks, go pay rent online and boost that score!