Are you looking for an easy way to improve your credit score? Then we have some good news for you: Paying rent online can help boost your score. According to TransUnion, people who report their rent payments to credit bureaus can increase their scores. In a study of 12,000 renters, scores increased by an average of 16 points within six months by simply reporting payments.
If you want to improve your credit score too, start paying your rent online. That way, your payments are reported, and credit bureaus will see the information they need. Also, when you combine online payments with a credit card, you may get an additional boost. Here’s how.
Unfortunately, simply paying your rent on time won’t improve your credit. You have to report those on-time rent payments.
The simplest way to ensure credit bureaus have a record of your on-time payments is to pay rent online. At Stonybrook Apartment Homes, we make it easy! Our online rent payment system automatically reports to credit bureaus. When they get the information about your on-time payments, it helps improve your credit score.
Giving Credit Bureaus the Info They Need
So how do credit bureaus determine credit scores? They use several factors, according to NerdWallet, including the following:
- What kinds of credit you have (e.g., credits cards, loans, or both)
- Total balances and debt
- The amount of time you’ve had credit
- When you last applied for credit
The most critical information they use is credit utilization, or how much of your credit limit you use, and payment history. Using a service that reports on-time rent payments to credit bureaus, like what we offer at Stonybrook, will help improve your credit score.
Combining with a Credit Card
You can boost your credit score even more if you pay rent online—and on time, of course—with a credit card.
“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.” Give your credit score a nice little boost by combining on-time online rent payments with a credit card you pay in full every month.
Improve your credit score by paying your rent through our resident portal. When you do, we’ll report your payments to the credit bureaus, which gives them the information they need to boost your credit score. And if you want to improve your score more, try paying with a credit card that you pay off every month. Now get started on improving your score!