Are you looking to increase your credit score? Well, paying rent online can help! RentTrack says, “For many Americans, the monthly rent check is their biggest expense. That they make their rent payment, on time and every month, is a great indicator of their creditworthiness.”
It turns out that paying rent online can be a simple way to start improving your credit! Doing so will record your payments, report to credit bureaus what they are looking for, and will allow you to use a credit card—increasing your credit score even more! Here’s how it works.
Paying rent online will allow your rent payments to be recorded, adding to your credit score. “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.”
At The Courtyards and Tierra Palms Apartment Homes, we offer an online rental payment system that reports information to the credit bureaus. When you pay your rent on time, this will be reported to credit bureaus, increasing your credit score.
Determining Credit Score
What exactly contributes to a credit score? Experian determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
When rent is paid online, it becomes part of this payment history. As you pay rent on time and in full, it will contribute to and increase your credit score.
Paying with a Credit Card
To increase your credit score even more, a credit card could be used to make your rent payments!
“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.”
While online rent doesn’t require that a credit card be used, this could be a great opportunity to utilize the benefits associated with using a credit card.
You may want to consider paying your rent online next time! At The Courtyards and Tierra Palms Apartment Homes, rent can be paid through our resident portal. As you pay rent online, your payments are recorded, showing credit bureaus the needed information to increase your credit. Plus, if you choose to pay rent with a credit card, you may increase your score even more. We wish you the best in increasing your credit!