Worried about your credit score? According to a study by RentTrack, reporting on-time rent payments to the three credit bureaus (Experian, TransUnion, and Equifax) raised credit scores by an average of 59 points. In some cases, scores improved by nearly 30 points after only a few months.
Paying rent online makes reporting payments simple and hassle-free. Credit bureaus can easily access this payment information, it can be combined with credit card payments, and it can lead to an even greater boost to your credit score. Here’s how paying rent online will increase your credit score.
Makes Sure Your Payments are Recorded
According to NerdWallet, “A lot of people who don’t have much of a credit history do have a history of paying rent on time. But that information doesn’t show up on their credit reports, and doesn’t help their credit scores.”
How can you really be sure your on-time payments are being recorded and sent to the major credit bureaus? At Lantern Bay Apartment Homes, our online rental payment system automatically reports payment information to the credit bureaus. After receiving verification of on-time payment, these credit bureaus can factor your payment into your credit score. On-time payments are always a step towards a higher credit score.
Sends the Right Signals to Credit Bureaus
It can be hard to understand what actually makes up a credit score and how paying rent online contributes to yours. Experian considers use of credit cards, payment history, and applications for loans and credit the most important factors when determining your credit score.
When paying rent online—compared to paying via check, for example—your payments become a part of your payment history. This means that each on-time and in-full payment builds your credit and raises your score over time.
Combines with Credit Card Payments for Higher Score Gains
Because managing credit and credit cards is such an important factor in your overall credit score, it may be a good idea to pay your rent each month with a credit card set aside specifically for rent.
LaToya Irby, a credit expert for The Balance, says, “Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month. The timely credit card payments will help boost your credit score.”
Paying rent online with a credit card isn’t a requirement for having your payments recorded with credit bureaus, but it will help accelerate the increase in your credit score as you combine multiple credit score factors.
Easily increase your credit score by paying rent online through our online resident portal. Your rent payments are automatically reported to major credit bureaus, who will see exactly what they need to raise your credit score. Consider boosting your score even more by paying with a dedicated credit card. Sit back, relax, and watch your score soar!