Rent tends to be one of, if not the most significant expense many of us have each month. However, this monthly payment doesn’t often make its way onto our credit reports.
With rent reporting services, however, that all changes. The chunk of change you commit to for a roof over your head can now serve you in more ways than one.
Reporting your rent can help you show your payment history, similar to how your credit card payments show your repayment behavior. On a cautionary note, reporting your rent can also lower your score if you fail to pay on time.
There are several rent reporting services to choose from when reporting payment history to boost your credit score. Our guide includes an overview of several of the most popular services, from cost and features to how they compare with the rest of the pack.
If you’re still on the fence about rent reporting services, consider this: Fannie Mae’s pilot program that allowed individuals to report their rent payments helped 10,000 renters establish their credit scores. Of those with established credit scores, the average increase was 40 points.
Are you ready to learn more about rent reporting services? Let’s get started!
5 Best Rent Reporting Services
Some of the best credit score apps can help you monitor your credit. If you sign up for one of these rent reporting services, it can be worth adding a credit score monitoring app to your download list to see if your credit score is improving.
1. Boom: Best Monthly Rates
When it comes to choosing the best rent reporting service, one name stands out from the crowd: Boom.
Launched in 2020, Boom has been transforming the lives of countless customers by helping them improve their credit scores with ease.
With its user-friendly app available for download on both the App Store and Google Play Store, Boom offers a seamless experience for tenants looking to make a positive impact on their creditworthiness.
What sets Boom apart from its competitors is its straightforward pricing model. While some rent reporting services charge an initial fee to begin reporting your rent to credit bureaus, Boom simplifies the process with a nominal $10 one-time fee and a mere $2 monthly fee thereafter.
With this affordable investment, Boom ensures that your rent payments are reported to all three major credit bureaus: Equifax, Experian, and TransUnion.
And the best part? You don't even need to involve your landlord in the process, saving you time and unnecessary complications.
However, Boom offers a convenient solution for those looking to boost their credit history further. For a one-time fee of $25, you have the option to report up to 24 months of past rent payments, allowing you to maximize the positive impact on your credit profile.
One standout feature of Boom is its commitment to customer satisfaction. Numerous users have praised Boom's exceptional support team, highlighting their responsiveness and dedication to resolving any queries or concerns. This level of personalized assistance can make a significant difference, adding even more value to your experience with Boom.
To ensure a hassle-free signup process, Boom eliminates the need for credit checks when creating an account. Instead, it securely links directly to your bank account, enabling seamless reporting of your rent payment transactions. With Boom, you can rest assured that your financial information remains confidential and protected.
2. LevelCredit: Best for No Landlord Permission
Wouldn’t it be nice if we could all live rent-free? It would certainly save a lot of money each month.
Since that’s unfortunately not the case, you can instead use your rent payment to your advantage, at least where your credit score is concerned. LevelCredit can help you accomplish this task with a low monthly fee.
For just $6.95 per month, you can report your rental payments to all three credit bureaus. LevelCredit also reports your utility and cell phone service payments only to TransUnion.
The best part about LevelCredit is that you don’t have to have your landlord’s permission to report your rent. Instead, LevelCredit’s software will pick out your monthly rent payments from your bank statements and report them automatically.
If you want to report previous rent payments, you’ll pay $49.95. You’ll also receive credit score monitoring and $1 million in identity theft insurance.
Some users were skeptical about LevelCredit because it does connect directly to your bank account, and some payments have been misidentified and misreported. Poor customer service experiences and a lack of a mobile app can also deter people.
However, LevelCredit offers one of the more comprehensive rent reporting services out there. While its monthly fees can be higher than other services on our list, it provides one of the best values if you want to boost your credit score with a positive payment history.
3. PayYourRent: Best if You Own Property
Reporting your rent payments as an individual can help improve your credit score. But what if your landlord were to give this option to all residents?
PayYourRent helps landlords do just that. If you own property and want to help your residents improve their credit scores with their payment history, consider this rent reporting service.
Plans at PayYourRent start at $19.95 per month for properties with up to 50 units. Additional fees may apply, but properties with over 50 units won’t have to pay a monthly fee.
PayYourRent will report tenant payment history to TransUnion, Experian, and Equifax. However, you cannot report past rent payments through this service, making it harder to establish a positive payment history quickly.
In addition to reporting rent, PayYourRent allows you and your tenants to complete rental applications, screen potential residents, and submit maintenance requests. PayYourRent offers same-day rent payment processing and same-day night rental deposits as well.
The biggest downside is that renters must sell their landlord on this software before using it. The setup process can also be lengthy compared to other services on our list.
PayYourRent doesn’t report utility payments either. Some users have found the mobile app lacking, so PayYourRent doesn’t rank as high as it could.
4. Rental Kharma: Best for Skeptics
Reporting your rent to improve your credit score is a great way to gain credit for what you already do. However, some people find it disconcerting to use this method to improve their credit scores.
Rental Kharma provides a solution for those folks. The rent reporting service offers a 100% money-back guarantee for 90 days after signing up.
This is one of the best refund policies among the rent reporting services on our list. You can also receive a refund if your landlord refuses to verify your payments.
Yes, Rental Kharma does require the cooperation of your landlord. This rent reporting service only reports to two credit bureaus, leaving Experian off the list.
Rental Kharma costs $75 to sign up and then $8.95 monthly. If you sign up for rent reporting with your roommates or spouse, you can receive a discount on pricing.
5. RentReporters: Best to Boost Credit Fast
RentReporters also lets you earn a 50% discount on sign-up fees for your roommates and spouses. Like Rental Kharma, it doesn’t report your rent payments to Experian.
The good news is that if you have up to 48 months of rent history across two or more leases, you can report them all with RentReporters. This extension allows you to report positive payment history without waiting for 24 or 48 more months before your credit score improves.
Reporting your past rental payments costs $25 extra if you pay monthly. If you choose the annual plan, those costs are absorbed within the yearly price.
RentReporters costs $9.95 per month or $94.50 annually. You’ll also have to pay a one-time $94.95 registration fee to sign up.
If you’re worried about the hefty sign-up fee, you can take full advantage of the seven-day money-back guarantee that starts after your credit score is updated. If you don’t see an improvement after your score updates, you have seven days to request a refund.
However, you should note that if you do request a refund, RentReporters will remove any rental history they previously reported. You’ll also need the cooperation of your landlord to verify your rent payments.
What is Rent Reporting?
At first glance, you might think rent reporting has something to do with apps for landlords. However, rent reporting best serves the renter, mainly through reporting (positive and negative) payment history.
To understand how rent reporting helps improve your credit, you’ll need to know how payment history factors in. Payment history, among the many other factors determining your credit score, can easily move you between credit score ranges by several points.
Figuring out how to improve your credit score requires knowing where your credit score sits. Positive payment history will boost your score, while negative history will bring it down.
If your credit score has dropped due to negative payment history, reporting your rent can help improve this. However, it can be challenging without a rent reporting service since no other avenues exist for reporting your rent.
Most rent reporting services send your information to all three credit bureaus to show that you’ve paid your rent, ideally on-time. While these reports differ from those sent by credit card companies, they achieve a similar result.
rent reporting services are one of many tools to boost your credit score. Some of the best credit-building apps and the best credit-builder loans work similarly.
Additional Credit Score Resources
Improving your credit score can require various approaches, especially if several factors weigh you down. Here’s a quick breakdown of how your credit score is determined:
- Payment history accounts for 35% of your score
- Amounts owed account for 30% of your score
- 15% of your score relies on the length of your credit history
- 10% of your score depends on your new credit
- Credit mix makes up the remaining 10%
Credit repair companies can help you improve your credit score in several ways. They may contact the credit bureaus to resolve any incorrect entries or speak with creditors on your behalf.
Credit score apps can also help you monitor your credit, especially when improving it. Here are a few of the most valuable credit score apps you can download:
- Credit Karma: This credit score app works well for beginners, especially if you’re unsure what factors pull your score down and why. Credit Karma pulls your report from Experian and TransUnion to update you on your credit score.
- Credit Sesame: The free version of this credit score app works well, but you can also pay for one of three subscription plans for more benefits. You can also use Credit Sesame to determine how much debt you owe and monitor your identity.
- CreditWise: This Capital One tool is free to download and monitors your TransUnion credit score. You’ll also receive dark web alerts from Experian to protect your personal information.
- myFICO: As the name states, this FICO-backed app shows you your credit score for free. However, you’ll have to pay $29.95 monthly to request quarterly reports on your credit score from all three bureaus.
Unfortunately, building credit can take time for most people. Remembering to stay the course and keep plugging away is critical.
FAQs
rent reporting services can be worth it to improve your payment history and credit score. You can also use the rent reporting service to report past positive payments to improve your credit retroactively.
Rent reporting can negatively and positively affect your credit score. Making on-time payments will boost your score in the payment history category, but failure to pay will result in losing points off your credit score.
The best rent reporting service to boost your credit is the one that works with your situation. For example, having a rent reporting service that doesn’t require your landlord’s approval can help you expedite the process and quickly improve your credit score.
Improve Your Credit Score With Your Rent
Paying rent can feel like a drag, but with rent reporting services, you can use these payments to your advantage. Report your rent to the right credit bureaus, and you could improve your credit score with payments you’ll already make.
We hope you’ve found this article helpful in learning more about rent reporting services and how they can help you improve your credit score. While it does take some financial commitment to make these positive changes, you can easily improve your credit score without having to do much besides pay your rent on time.
How can you use rent reporting services to your advantage?
