Building Better Credit: Does Renting an Apartment Build Credit?
If you're one of the millions of people looking for an apartment to rent at any given moment, you're likely focused on finding the perfect space in the ideal neighborhood at the right price. While the perks of living in a great space in a great community certainly abound, there are other great things about renting an apartment...like the fact that renting an apartment can also help you improve your credit score.
Wait, wait. You're likely thinking, "Does renting an apartment build credit?" Yep! You can build a more solid credit history by making on-time rental payments. And if you're lucky enough to live at Silver Lake Hills Apartments, you have an even better chance at boosting your credit. Keep reading to find out how.
Does Renting an Apartment Build Credit?
So, does renting an apartment build credit, and if so, how is that even possible? Yes! Paying your rent on time monthly can help build your credit, especially if your property management company reports your payments to credit bureaus. For example, at Silver Lake Hills, we partner with Esusu Rent to offer credit reporting as an additional benefit to our residents. By reporting each on-time payment, we help our residents build their credit scores and stay on track toward their financial goals.
Which Credit Score Does On-Time Payments Affect?
While both VantageScore 3.0 and 4.0 and FICO Score 9 consider your rental payments when evaluating your credit history for their most commonly used credit score, lenders may receive different types of scores depending on the purpose of the loan. For instance, if you're applying for an auto loan, the FICO Score will focus on factors that suggest you can repay the loan in full, and rental history may not necessarily be one of those factors. While this might seem like a bummer, don't worry! Building a good credit score with rental payments can still make a huge difference, especially if you're looking to finance a lease or take out a loan in the future.
How Credit Reporting Works
As you can see, rent reporting is a great way to positively build your credit history by taking advantage of payments you already make (why not, right?).
With apartment communities like Silver Lake Hills partnering with rent reporting services, you can use your monthly rental payments to build your credit score. Just be sure to sign up for the service, regularly check your credit report, and don't hesitate to ask for help if needed. If you've never had your rent reported in this way, here's a brief breakdown of how it works (although the exact process may vary depending on the rent reporting service your apartment community or property management company uses.
Setting Up Rent Reporting
Some property management companies partner with rent-reporting services to help residents build credit. If they don't, you can look for rent reporting services and speak to the head of the apartment community or property management company to see if they're willing to report your rent to that service. Once you sign up for the service, you'll need to provide information about your rental unit, such as your address, the property management company's name, etc. They'll then need to provide some information to the rent-reporting service so they can set up payment processing. Once everything is in place, you'll (usually) send your full rental payment to the reporting service, who will take out their fee and send the rest to your property management company.
Checking Your Credit Report
It's essential to regularly check your credit report to ensure that your rental payments are getting reported. Typically, rent payments can take up to 30 days to appear on your credit report, so don't be alarmed if they don't show up immediately. Once you see that your rental payments are accurately reported, you can rest assured that it will positively impact your credit score.
Getting Help From Rent Reporting Services
If you notice that your rental payments are not being reported on your credit report, don't panic. The first thing you should do is contact your property management company to ensure they're working with a rent reporting service. If they are, contact the rent reporting service to see if there is an issue with your account. They are typically very helpful and can work with you to resolve any issues.
How Much Can You Boost Your Credit Score by Paying Rent?
While the answer to that question varies from one resident to the next, reporting your rent payments to credit bureaus can increase your credit score by up to 60 points. Plus, it just takes a few months of consistent payments to start seeing results. Aside from being able to quickly and substantially boost your score (depending on your current credit rating and other financial factors), rent reporting has other benefits. Apartment credit reporting services, like the one offered by our partner, Esusu Rent, are a great option for those looking to improve their credit without taking on new debt or increasing their monthly expenses.
This kind of service is perfect for anyone unable to qualify for traditional credit sources, like credit cards or loans. It's also great for those who are just starting on their own and want to build a strong financial foundation. Rent reporting is a great place to start if you have no previous credit history.
Really...the question is, why not take advantage of the payments you already make by reporting them? It comes at no extra cost to you, and by taking advantage of this service, you can build a positive payment history and show creditors you're reliable and responsible. This will come in handy when you apply for mortgage loans, car loans, and other financial products in the future.
Improve Your Credit at Silver Lake Hills
So, does renting an apartment build credit? It does if you rent at Silver Lake Hills Apartments! By renting an apartment at Silver Lake Hills, you can take advantage of our partnership with Esusu Rent to improve your financial standing with every on-time payment. Ready to join our community? Schedule a tour of our beautiful community today and learn more about our rental reporting services.
I love this apartment complex. It is close to everything in Fenton. The ladies in the office are very helpful. They allow dogs and cats here. They have a small fenced-in area for the dogs to play inside the complex. They have a playground for the kids and a swimming pool.- Facebook Review
...Some of the apartments are large inside compared to others complexes. I rented a one bedroom 900 square feet! Living room and bedroom were very large in size! The apartments have 3 floors and some have balconies! The units all have washers and dryers in them as well as dishwashers and garbage disposal and microwave! It also has a park for the kids.- Google Review