Looking to increase your credit score? Don’t worry—you don’t have to take out and then meticulously pay back a loan. You can just make online rent payments!

It may sound too simple, but check this out: In 2017, TransUnion studied 12,000 renters who reported their rent payments to credit bureaus over the course of a year. The study found that renters’ scores rose an average of 16 points within six months, and the benefit was greatest for those who started with a credit score below 620.

So try paying your rent online and see what it does to your credit score. When you pay online, 

your payments are reported, it shows credit bureaus what they are looking for, and it can combine with credit card payments to increase your score even more. Here’s how.

Send Your Payments to Credit Bureaus

Paying rent is a pretty simple way to increase your credit score! But how does it work?

“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.”

You have to make sure your payments are recorded. But how? At The 3900, our online rent payment system reports information to the credit bureaus. Credit bureaus then receive a record of your on-time rental payments, contributing to your good credit.

Beef Up Your Payment History

What exactly are the credit bureaus looking for? Experian, for example, determines credit scores through the following elements:

  • Payment history
  • Use of credit cards
  • 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.

Boost Your Score Even More

For another added boost to your score, you might try getting a credit card that you only use to pay rent.

“Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month,” says LaToya Irby, credit expert for The Balance. “The timely credit card payments will help boost your credit score.”

It’s just one extra step to add to your rent payment each month, but when you pay off that bill, it pays off for you!

Making online rent payments is easy through our resident portal. When you pay through the portal, your payments are reported to credit bureaus, showing them exactly what they are looking for. And if you choose to pay with a credit card, you may increase your score even more. Let us know if you have any questions!