Do you have bad, mediocre, or no credit? If so, rent reporting could be the tool you need to improve or establish a credit score without taking on new debt.

Why Do I Need to Establish or Improve My Credit?

A good credit score isn’t just a number, it’s a key that unlocks better financial opportunities. Good credit can help you:

1. Qualify for lower interest rates on personal loans, car loans, and mortgages
2. Get approved for apartments, utility services, and even some cellphone plans
3. Save thousands over the life of a loan
4. Pass employment screenings, as some employers check credit reports

Without a strong credit history, many financial doors remain closed or come with costly conditions. 

What is Rent Reporting?

Rent reporting is the monthly reporting of your timely rental payments to at least one of the three major credit bureaus: TransUnion, Equifax, or Experian. These payments, once reported, appear on your consumer credit report and may be factored into your credit score.

According to a study by the Urban Institute, a think tank in Washington, D.C., rent reporting can result in “large statistically significant increases in the likelihood of having a score and of having at least a “near prime” score — a minimum of 601 on a scale of 300 to 850.”1

Here’s how it works:

1. Only on-time payments are reported through positive rent reporting programs.
2. Late or missed payments are excluded, protecting your credit score.
3. However, unpaid rent sent to collections can still appear on your credit report.

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How to Enroll in Rent Reporting

Getting started is easier than you might think. Here’s what you need to know:

Step 1: Choose a Rent Reporting Service

There are several financial technology firms that submit rent information to credit bureaus, such as:

1. Esusu
2. TurboTenant
3. Self Financial
4. Piñata
5. Boom
6. LevelCredit
7. Rental Kharma

Some of these services:

• Require your landlord’s participation (others do not) Charge low monthly or annual fees (typically $5–$10 per month)
• Allow you to back-report up to 24 months of rent history

Step 2: Sign Up and Consent

You can opt into rent reporting by completing a simple enrollment or consent form. You may be asked for:

• A copy of your lease
• Proof of payment (bank statements or receipts)
• Landlord contact information (depending on the service)

You can opt out at any time, and the process is voluntary.

Step 3: Watch Your Score Improve

It may take 45 to 60 days before your rent payments start appearing on your credit report. Over time, consistent on-time payments can lead to credit score increases averaging 16 to 40+ points, depending on your credit profile.

Things to Consider Before Opting In

While rent reporting can be a powerful tool, it may not benefit everyone equally. For example:

• If you already have several long-standing, positive credit accounts, adding rent reporting may have little to no impact—and could temporarily lower your score by shortening your average credit history.
• Not all credit scoring models factor in rental payments (especially older FICO models). The Vantage Credit Scoring model factors in rental payments.
• Some services charge setup fees or ongoing costs, Total Alignment Charitable can help you evaluate if it’s worth the investment for your situation.