Credit history is pretty important. In today’s world, a good credit score can lead to lower cost loans – whether that be a car loan or a credit card interest rate. Additionally, many employers are now checking credit scores as part of background checks on potential employees. Most people know that a good credit history is important, but much less well known is that you can build credit history with online rent payment.
Credit Reports Include Rent Payment
In the 2000s, the big 3 US credit bureaus started to add rent payment information to an individual’s credit history. Initially, they offered this only to some people who rented from the largest apartment companies.
In 2012, Experian through its Experian RentBureau subsidiary, made a revolutionary step by allowing tenants in the ClearNow online rent payment service to report their payments. Later on, Experian worked with other online rent payment service providers to also start reporting rent payments.
How to Build Credit History with Online Rent Payment
There are a number of services that help tenants get their rent payment information added to their credit history. Unfortunately, some of them appear to be a little expensive. RentReporters charges a $94.95 sign-up fee and then $9.95/mo. Rental Kharma similarly charges a $50 setup fee and then $8.95/mo per renter.
If you can get your landlord to use ClearNow’s online rent payment service, there is no fee for you as a tenant to have your payments furnished to Experian. Landlords using ClearNow pay $14.95/mo for the first tenant and just $2/mo for each additional tenant.