When it comes to paying rent, there’s not much of a difference between paying online or paying by cash or check, is there? There may not be too much of a difference on the surface, but paying rent online has an added benefit: it can help you build credit! In fact, one study of 12,000 renters found that renters’ scores rose an average of 16 points within six months, benefiting those who started with a credit score below 620 the most.
When you pay rent online with us, we automatically report your payments to credit bureaus, which shows them that you are a responsible bill-payer. Plus, these payments can combine with credit card payments to increase your score even more. Keep reading to learn how!
Step 1: Get Your Payments Reported to Credit Bureaus
Not all rental communities report payments to credit bureaus, which means that paying rent usually doesn’t affect a renter’s credit score. But in cases where those payments are reported, they can help build credit, “especially if you are new to credit or do not have a lot of experience using it,” says Bev O’Shea at NerdWallet.
So how do you get a record of your payments to the credit bureaus? At Lantern Bay Apartments, our online rental payment system automatically reports information to the credit bureaus so you don’t have to. As credit bureaus receive a record of your on-time rental payments, your credit score is likely to improve. 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.
Step 2: Maintain Those On-Time Payments to Show Credit Bureaus You Are Responsible
What makes up a credit score? Things like your loan payment history, the credit cards you use, and applying for new loans or credit. So where does paying rent fit into that? As you pay rent online, those payments become part of your payment history. And as you keep paying on time and in full, that impressive record becomes part of your score, too.
Step 3: Consider Paying Rent with a Dedicated Credit Card
Have you ever gotten a credit card just to pay for something specific, like gas for your car? Consider using a credit card just to pay for 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.” Paying with a credit card or not is totally up to you, but it’s an easy way to build your credit since you’re paying rent anyway!
Building your credit is as easy as one, two, three! Hop on over to the resident portal and try paying your rent online. You might just build credit as we report your payments to the credit bureaus and pay with a credit card. Give it a try!