Does paying rent build credit? Short answer: Not automatically… but it can.
Here’s the thing: Lots of activities automatically build your credit score - paying your bills on time, settling your debts, keeping your credit utilization low, and more. These things boost your credit without you taking any extra steps. But only when you’re dealing with automatically reported payments, like credit cards or mortgages.
Does paying rent build credit? Not automatically. More than 99% of renters let those payments go unreported. Why are so few reporting to the credit bureaus? Because rent payment reporters have to be vetted by the credit bureaus themselves, to ensure their integrity and security of your data. And frankly, because most people don’t know that they can.
Fortunately, LevelCredit is one of these vetted entities, and one of the pioneers of rent and utilities reporting.
So although fewer than 1% of Americans see their rent payments reflected in their credit score history, they’re missing a trick. With LevelCredit, you can report your on-time payments to credit bureaus and make your biggest monthly expense boost that all-important three-digit number.
LevelCredit users increase their Vantage3 scores by an average of 20 points in two months, and 50 points after two years.All it takes is the price of a trip to McDonalds per month. We can even locate your past payments and report these too.
So, does paying rent build credit? Automatically, no. But with LevelCredit, yes!
So now you know: with LevelCredit, paying rent can build credit. But there are other ways to build your credit score. Learning about them will be super helpful in getting you the credit score you want, and the bright financial future you deserve.