Property Management Blog

Did You Know Rent Payments Can Affect Your Credit?

Did You Know Rent Payments Can Affect Your Credit?

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. SureWay understands the importance of building credit history and believes that responsible renters should get credit for managing their rental payments.

How Paying Rent On Time Helps Build Your Credit History
Experian incorporates on-time rental payment data reported to Experian RentBureau into Experian credit reports. Your rental payment information will be included as part of your standard credit report and may be incorporated into certain credit scores. The inclusion of positive rental payment history within Experian credit reports allows you to establish or build credit history through timely rental payments.

“In the long run, having a two-year excellent credit line for my rental payments will add value by helping me to potentially receive lower interest rates on a mortgage and car and consumer loans. I may even get a better rate on insurance premiums.”
— B. Scott, Multifamily Resident

How Rental Payment Data is Used
Experian RentBureau receives updated rental payment data every 24 hours from property management companies and electronic rent payment services nationwide. This data is accessed by resident screening companies for use during the application process for prospective residents. Continuous on-time rental payment data also may be incorporated within Experian credit reports, which are used by various types of credit-granting institutions, including banks, auto finance companies and telecommunications providers.

How To Make Sure Your Rent Is Reported
If you currently rent or are considering renting, ask your property management company if it reports rental payment data to Experian RentBureau. If renting from an individual landlord or property management company that does not currently report data to Experian, you can always sign up with a rent payment service working with them.

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