Are you still giving your landlord a check every month to pay your rent? It might be time to consider a new approach. The world has been living in the digital age for decades now, and it’s time for your rent payments to join in on the fun.
Paying rent online is a great way to enter the 21st century. Not only could you save yourself some time, but you could give your credit score some love at the same time. In a 2017 study, TransUnion found that renters saw an immediate increase in their credit scores when they began paying rent online—especially those with lower credit. Here are a few reasons to try paying rent online.
Get Your Rent Payments 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.”
So how do you make sure your rent payments are reported? At Summer Crest Apartment Homes, we offer an online rental payment system that reports information to the credit bureaus. That way, credit bureaus receive a record of your on-time rental payments, which contributes to your good credit.
Help Credit Bureaus See Your Good Work
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.
Use a Credit Card to Boost Your Score
Have you considered paying your rent with a credit card? It may not be the way you are used to paying rent, but this method is getting more popular. One survey found that credit card rent payments increased by 43 percent in the first half of 2020.
Aside from the possibility of cash back and other credit card rewards, using a credit card for your rent could actually help your credit score. You work hard to pay your rent on time every month, but those on-time payments aren’t typically reported to the credit bureaus. If you use a credit card, however, paying rent could start to make a difference for your credit rating. Of course, the key here is to continue paying your bills on time. Pay that credit card off every month to get the full benefit.
If paying your rent online sounds like the way to go, we’ve got you covered at Summer Crest. Head over to our resident portal each month to submit your payment. As you do so, your payments are reported to credit bureaus, showing them exactly what they are looking for. If you use a credit card, enjoy the double-dip in the credit-boosting pool!