The amount of your monthly rent payment does not directly affect credit scores. However, having your positive rent payments reported to Experian can be incredibly helpful for people who are trying to establish their credit history.
Regardless of the amount, if your rental payments are made on-time every month and reported to Experian, they can help you build good credit. It doesn't matter if your rent is a few hundred dollars or a couple thousand dollars a month, the most important thing is that you are paying your rent on-time.
Positive rental payments can be reported to Experian by your landlord or property management company. You can also sign up to have your payments reported through a rent payment service.
By incorporating on-time rental payments into your Experian credit reports, you are showing credit grantors, such as banks, credit card companies, auto finance companies, and telecommunications companies that you have the ability to pay bills on time and manage your financial obligations.
Check out the scope to hear answers to all the questions asked.
Do You Have Questions About Credit?
Join our live video chat every Tuesday and Thursday at 2:30 p.m. ET on Periscope. Rod Griffin, Director of Consumer Education and Awareness at Experian, is available to answer your questions live.
Scoped on: 1/08/2019