Did you know you can actually boost your credit score when you pay rent online? Understanding the importance of building a credit history and that responsible renters should be rewarded for their on-time payments, Experian incorporates rental payment data into their credit reports, boosting your score.
When you pay rent online, you ensure those payments are being reported to the credit bureaus, provide those bureaus key reporting data, and, when combined with credit card payments, can further increase your score.
Get Your On-Time Payments Reported
“Historically, rent has not had much of an effect on your credit score. However, that has changed in recent years,” says Paul Sisolak on Student Loan Hero. “Some newer services make it possible for those monthly rent payments to contribute to your credit history.”
So how do you ensure your rent payments are reported? Luckily, Fair Oaks offers an online rent payment system that reports positive payment information to the credit bureaus. That way, the major credit bureaus—TransUnion, Equifax, and Experian—receive a record of on-time rental payments, further enhancing your good credit. In order to opt in for the credit reporting, follow these steps:
- Log in to your account through the resident portal and click on “Make a Payment Now.”
- Select “Build your credit history by opting in to credit reporting.”
- Enter your information in the credit reporting fields. Be sure to select “yes” for month-to-month lease if you have one, or select “no” and a lease end date.
Provide Credit Bureaus with Key Information
What actually goes into a credit score, and does paying rent online contribute? There are typically several elements that, when combined, establish your credit score. Experian, for example, considers the use of credit cards, payment history, and applications for new loans and credit.
When you pay your rent online, those payments are considered part of your recorded payment history. And, when you continually pay on time and in full, that information is reflected in your credit score.
Use One Specific Credit Card for Even Higher Score Gains
If you are looking to boost your score even more, consider using one dedicated credit card specifically to pay rent online, paying that card balance off every month.
“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.”
You don’t have to pay your rent with a credit card, but it can be a nice little boost to your credit score in combination with the benefits of paying your rent online.
Boost your credit score by paying your rent online through the Fair Oaks resident portal. When you pay rent online, your payments are reported to credit bureaus, showing them exactly what they are looking for. Plus, if you choose to pay rent with a credit card, you may increase your score even more.