Build Credit History with Online Rent Payment

Build Credit History
You can build credit history with online rent payment.

Your credit history has never been more important. In today’s world, a good credit score can lead to lower cost loans, which can be a car loan, credit card interest rate, or home loan. Additionally, many employers are now checking credit scores as part of background checks on potential employees. While most people know that a good credit history is important, less well known is that you can build credit history with online rent payment.

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In the early 2000s, the big 3 US credit bureaus started adding rent payment information to an individual’s credit history. Initially, they offered this only to tenants who rented from the largest apartment companies. So there were still a large number of tenants missing out on this opportunity to build credit history because they were renting from smaller landlords.

In 2012, Experian made a revolutionary step by allowing tenants using ClearNow’s online rent payment service to report their rent payments. In the years that followed, Experian has allowed other online rent payment services to report rent payments.

How Can I Get Rent Payment on My Credit History?

There are a number of services that help tenants build credit history with online rent payment information. Unfortunately, some of them can 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 tenant.

If you can get your landlord to use ClearNow’s online rent payment service (sign up at www.ClearNow.com), there is no fee for you as a tenant to have your payments reported to Experian. Your landlord will be charged $14.95/mo for the first tenant and just $2/mo for each additional tenant.

Can I Build Credit with Rent Payment?

rent payments can build credit
Your Credit is Important. Your Rent Payment Can Help.

Yes! Your credit history has never been more important. In today’s world, a good credit score can lead to lower cost loans – whether that be a car loan, credit card interest rate, or home loan. Additionally, many employers are now checking credit scores as part of background checks on potential employees. While most people know that a good credit history is important, much less well known is that you can build credit history with rent payment.

When Did Rent Payment Get Added to Credit History?

In the 2000s, in the United States, the big 3 credit bureaus started to look at adding 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. In the years that followed, Experian worked with other online rent payment service providers to also start reporting rent payments.

How Can I Get Rent Payment on My Credit History?

There are a number of services that help renters 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 (sign up at www.ClearNow.com), there is no fee for you as a tenant to have your payments reported to the Experian RentBureau service. Your landlord will be charged $14.95/mo for the first tenant they have using ClearNow, and just $2/mo for each additional tenant.

Can you Explain Your Credit Reporting Feature?

Tenants who wish to build a credit history with their ClearNow rent payment data may opt in to our free credit reporting feature after they are enrolled in our online rent payment service.

ClearNow rent payment data will be furnished to Experian once your tenant has four (4) payment periods of data. Subsequent data is furnished on a monthly basis. We can only furnish rent payment data made while a tenant is enrolled in ClearNow.

Why Building Your Credit History is Important

Credit plays an important role in your life — affecting the purchases you make and much more. A credit history is vital in today’s economy and enables you to obtain valuable credit services such as credit cards, mortgages, and auto loans. Lenders use credit reports and credit scores to gauge the likelihood that you will pay back a loan.

How Paying Rent on Time Helps Build Your Credit History

Experian incorporates on-time rental payment data into their credit reports. Rental payment information will be included as part of a standard credit report and may be incorporated into certain credit scores. The inclusion of positive rental payment data in Experian credit reports allows your tenant to build credit history through timely rental payments.

Why don’t I see my rent payments on my credit report?

ClearNow can only furnish rent payment data to Experian. So please make sure that you are pulling your credit report directly from Experian.  You must also opt in for credit reporting with ClearNow in order for us to furnish the data. This is a separate process from your enrollment into ClearNow as your payments are not automatically reported. Instructions on how to opt in for credit reporting are in every rent reminder email. Please note, ClearNow must have four months of complete data before we can furnish your rent payment data.

Why Don’t I See My Rent Payments On My Credit Report?

ClearNow only furnishes rent payment data to the Experian credit bureau. Once you are enrolled in ClearNow, you must take an additional step and opt in for credit reporting if you would like your payment data furnished. Once you have four months of complete data, those months will be furnished to Experian and each month thereafter, on a monthly basis. If you still do not see your rent payments, please make sure that you are checking your Experian credit report and not one with another credit bureau.

Can I Have My Rent Payments Reported Through ClearNow Without Enrolling For The Autodebit?

No.  ClearNow enables landlords and property managers to collect rent electronically and for tenants to pay rent electronically.  As an added benefit, tenants can have us furnish their ClearNow rent payment data to Experian.  We can only furnish data to the credit bureau while the tenant is enrolled in ClearNow.

My tenant has been with me for two years. Can you report the rent payments for my tenant?

ClearNow can furnish rent payment data that is made while a tenant is enrolled in our service but we cannot report rent payments your tenant made prior to enrolling in ClearNow. Once you and your tenant are enrolled in ClearNow and your tenant opts in for credit reporting, we will be able to furnish the data from that point forward.