Boosting Your Credit Score with Rent Payments in the U.S.

For many Americans, building or improving a credit score can feel like a catch-22—you need credit to build credit, but without a solid history, lenders are reluctant to give you a chance. One way to tip the scales in your favor that often flies under the radar is by making your rent payments count toward your credit score. Rent is likely your biggest monthly expense, so why not put it to work?

Traditionally, rent payments haven’t been reported to the major credit bureaus, leaving renters at a disadvantage compared to those with mortgages. But in recent years, services have emerged that allow your on-time rent payments to be reported to credit bureaus like Experian, Equifax, and TransUnion. These services act as middlemen, verifying your payment history and submitting it in a format credit bureaus recognize.

It's important to understand that not all credit scoring models treat rent the same. Newer versions of FICO, like FICO 9 and 10, and VantageScore do take rent into account if it’s reported. However, some lenders still use older models that ignore rental data altogether. That doesn’t mean it’s not worth it—it just means that rent reporting is one of several tools you can use to round out your credit profile.

To make this strategy work for you, you’ll need to sign up for a rent reporting service. Some of these are offered through property management companies, while others can be added independently by renters. Prices range from free (if your landlord covers the cost) to about $10 a month. Make sure you choose a service that reports to all three bureaus for maximum impact.

Keep in mind that reporting rent is only beneficial if your payments are timely. A late rent payment that gets reported could hurt your credit rather than help it. So, before opting in, take a hard look at your payment habits. If rent sometimes slips through the cracks, it might be wise to hold off until your finances are more predictable.

Adding rent to your credit file is especially powerful for those with thin credit histories. Students, recent immigrants, or individuals recovering from bankruptcy can demonstrate financial responsibility in a way that traditional credit lines might not allow yet. Over time, consistent rent reporting can even help you qualify for better terms on car loans, credit cards, and mortgages.

In a world where your credit score can affect everything from job applications to apartment approvals, leveraging your rent payments could be the simplest, most consistent way to build credit from something you're already doing. If you’re renting and paying on time every month, there’s no reason that shouldn’t help pave the way to a stronger financial future.