How Rent Payment Reporting Can Improve Your Credit Score: What to Consider

Rent Reporting Services: A Growing Tool to Boost Credit Scores

Rent reporting services enable consumers to have their rent payment history reported to one or more of the three major credit bureaus: Experian, Equifax, and TransUnion. This practice has gained traction as a means to help individuals, particularly those without established credit histories, build or improve their credit profiles.

Who Benefits Most from Rent Payment Reporting?

Experts highlight that rent reporting is especially advantageous for the “credit invisible”—people without any prior credit records. According to a 2021 TransUnion report, consumers who incorporate rent payments into their credit reports typically experience an average increase of 60 points in their credit scores.

Younger adults, such as Gen Z, are more inclined to rent and often have shorter credit histories, making them prime beneficiaries of these services. In 2025, approximately 18% of Gen Z respondents reported their rent payments to credit bureaus, marking the highest usage among generations, though this was down from 26% in 2024. Millennials followed at 16%, with Gen X and baby boomers reporting lower participation rates of 12% and 8%, respectively.

Critical Considerations Before Enrolling

Not all rent reporting services operate identically, which necessitates careful evaluation before enrollment. Some services only report timely rent payments, while others include late payments, which can adversely affect credit scores if not managed carefully.

Chi Chi Wu, senior attorney at the National Consumer Law Center, advises weighing potential negative consequences, such as financial instability or job loss, before opting into such services. Similarly, consumer expert Schulz suggests that individuals uncertain about future rent payment ability should reconsider enrollment.

Five Key Questions to Ask

1. Do you need it? For those with limited or no credit history, rent reporting can significantly impact scores. However, individuals with established credit may see minimal benefit.
2. What are the costs? Fees vary, with some services free and others charging between $6.95 and $9.95 monthly, plus possible enrollment fees ranging from $25 to $95. Confirm whether landlords cover any fees.
3. Does the service report to all three credit bureaus? Reporting to Experian, Equifax, and TransUnion ensures comprehensive credit profile updates. Partial reporting can limit effectiveness when applying for credit.
4. What data is reported? Determine if the service reports only positive on-time payments or also late payments. Interruptions in reporting can raise questions for future landlords or lenders.
5. What is the cancellation policy? Policies vary widely; understanding how to cancel and the implications on credit reporting is essential before committing.

Conclusion

Rent payment reporting can be a valuable tool for credit building, particularly for younger consumers or those lacking credit history. However, consumers should carefully assess the service features, costs, and potential risks before enrolling to avoid unintended negative credit impacts.