credit money management

5 Ways to Boost Credit Score by Getting Credit for Rent Payments

If you want to boost your credit score then there are many different things that you can do. However, one of those things is relatively new. Only in recent years have you been able to get credit for your on-time rent payments. If you’re a renter, and you always pay your rent on time, then don’t miss out on this opportunity. Here are five different ways that you can boost your credit score by making sure it reflects your rent payments:

1. Sign Up For Experian Boost

You can easily use this quick tool to boost your credit score. You simply need to set up or sign into your free Experian account. Then link that account with your bank account that you use to pay your rent. The tool will immediately scan your payment history in search of rent and utilities payments. Both of those items can boost credit score. In fact, you’ll see the FICO credit score increase reflected immediately on the Experian app.

2. Sign Up for UltraFICO

Right around the same time that Experian launched their tool, UltraFICO launched as a competitive tool. It basically works the same way. It reviews all of your banking activity and updates your credit score accordingly. In addition to getting credit for your on-time rent payments, you can get credit for regularly having cash on hand, length of your accounts, and other banking details. Note that this one is a brand new tool and you may have to get on a waiting list before you can utilize it.

3. Use Dave Mobile Banking

Dave is an online-only bank. You can easily create an account without any minimum. You can set up a new account or fund it by linking your existing bank account directly to it then transferring funds. Boost your credit score when you use the account to pay your rent. Dave will report only your on-time rent payments, so this tool can only hurt you and never make your credit worse. Plus, this account has lots of other great benefits including a free $100 cash advance, AI-assisted information for budgeting and managing your account, and no overdraft fees.

4. Pay Your Rent with Clear Now

ClearNow is a rental payment service. You send your rent payment through them and it goes directly to your landlord. They report your payments to the credit bureaus which can improve your credit score. There’s no charge to you for the service. However, there’s a caveat: your landlord has to agree to sign up for Clear Now. They do have to pay a fee for the service. So, whether or not this works for you really depends on your landlord.

5. Sign Up for Rental Kharma

You can pay for services that will track your rent payments and report them to credit bureaus. Rental Kharma is one of those services. You register with them, pay a one-time $50 fee, and then they’ll scan your payment history dating back two years. They’ll report that information to TransUnion, which can easily boost credit score.

Your landlord does have to be involved with this one. However, they don’t have to pay anything. They just have to be willing to communicate with Rental Kharma. Initially, they have to confirm that they own the property. Then each month they have to confirm that you made your rent payment. They can do that by text, email, or phone. If your landlord is willing to do that, and you’re willing to pay the $50 fee, then you can benefit from this service.

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Kathryn Vercillo

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