If you aren’t paying your rent online, then you are doing it wrong. Paying rent online has so many benefits, including improving your overall credit score. TransUnion studied 12,000 renters who reported their rent payments to credit bureaus over the course of a year. The study found that the credit scores rose 16 points within six months on average. Those who started with a credit score below 620 saw the most significant impact!
If you are looking to increase your credit score, pay your rent online so that your payments are reported and build a consistent payment history. For an extra boost, pay with a credit card, and you will see positive results in no time!
Pay Your Rent Online and Report Your Payments
“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 Fair Oaks Apartments, we take care of the hard part for you! To raise your credit score, all you need to do is pay your rent online and on time. Our online rental payment system will automatically report all your information to the credit bureaus. The more times you pay your rent online, the higher your score will be.
Build a Payment History
Paying rent online is great, but you have to be consistent if you want to see improvements in your credit score. According to Experian, credit scores are determined 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 continue to pay on time and in full, your credit score can increase.
Pay with a Credit Card for Higher Score Gains
While not a deal-breaker if you don’t, paying your rent online with a credit card will give your score an extra boost. If you are struggling to improve your score, or if your score is lower than average, we suggest using a credit card for your online rent payments.
LaToya Irby, credit expert for The Balance, recommends this as well. “Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month,” says Irby. “The timely credit card payments will help boost your credit score.”
At Fair Oaks Apartments, improving your credit score has never been easier. Just make your online rent payments through our resident portal. As you do so, your payments are automatically reported to credit bureaus, and you can build a credit history. Pair that with a credit card, and your credit score will improve in no time!