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.
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.
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.
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.
ClearNow furnishes rent payment data to Experian RentBureau. Once a tenant is enrolled in ClearNow, he/she can opt in for this service. Once we have four months of complete data, those payments are furnished to Experian. Thereafter, the tenant’s ClearNow rent payments are furnished on a monthly basis.
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.
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.
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.
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.