If you want to increase your credit score, you are not alone: Over 30 percent of Americans have a credit score that is below the national average of 680.
The good news is that you can start improving your credit now through online payments, including your rent. As you pay your rent online, your payments are reported, showing credit bureaus what they are looking for. If you combine your efforts with a credit card, your credit score will improve in a matter of no time. Here is all you need to know!
Paying online is the first step to building your credit; that is because it ensures that your payments are reported to the credit bureaus. According to Bev O’Shea from NerdWallet, “Simply paying your rent will not help you build credit. But reporting your rent payments can help you build credit—especially if you are new to credit or do not have a lot of experience using it.”
So how can you make sure to report your rent payments? At Highland Pinetree Apartments, we care about your credit score and want to make the process of building your credit as smooth as possible. That is why we offer an online rental payment system that reports information to the credit bureaus. As you pay your rent online, credit bureaus receive a record of your on-time rental payments, contributing to a higher credit score.
Showing Credit Bureaus What They Want
Have you ever thought about what determines a good credit score? According to Experian, the following elements determine your score:
- Use of credit cards
- Payment history
- Length of credit history
When you pay rent online, those payments become part of your payment history, which in return helps build your score. As you consistently pay your rent online, you can increase your score dramatically.
Receiving Even Higher Gains with a Credit Card
If you are looking to give your credit score a boost, consider paying rent online with a credit card.
“Open a credit card and use it to pay your rent . . . then pay your credit card balance in full each month,” says LaToya Irby, credit expert for The Balance. “The timely credit card payments will help boost your credit score.”
If you are looking for ways to improve your credit, we’ve got you covered! Pay for your rent on time and in full through the resident portal. As you do so, your payments are reported to credit bureaus, showing them exactly what they are looking for. Plus, if you pay rent with a credit card, your score will dramatically increase. Happy credit-boosting!