Change your credit score!

Hey there, savvy renters! Did you know that you can use your rent payments to boost your credit score? If you’re renting and looking to improve your credit score, you might want to consider reporting your rent to the credit bureaus. It’s a game-changer, and here’s why.

Now, full transparency: I am writing about Rental Karma because I am most familiar with it and I benefit from anyone using it. However, I encourage you to research other options if you feel inclined as you consider the information presented in this blog about reporting rental history to build credit.

Why Reporting Rent Matters

Many people are unaware that rent payments can be reported to the credit bureaus, just like mortgage payments. Historically, rent payments haven’t been included in credit reports, but that’s changing. With services like Rental Karma, your on-time rent payments can positively impact your credit score. This is particularly useful for those who might not have a long credit history or are looking to improve their credit score without taking on more debt.

Facts and Data

• Credit Score Improvement: According to a study by TransUnion, renters who reported their on-time rent payments saw an average increase of 16 points in their credit scores within six months (TransUnion, 2017).
• Widespread Impact: Around 45 million Americans are renters, and many could benefit from reporting rent payments to boost their credit scores (U.S. Census Bureau, 2020).
• Easier Approval: Higher credit scores can lead to better interest rates on loans and credit cards, and can also make it easier to get approved for a mortgage when you’re ready to buy a home.

Introducing Rental Karma

So, how does one start reporting rent payments? Enter Rental Karma. This service makes it simple for renters to report their monthly rent payments to the major credit bureaus. Here’s how it works:

1. Sign Up: Create an account with Rental Karma.
2. Verify Rent Payments: Provide details about your rental history and landlord. Rental Karma will verify your payments.
3. Report to Bureaus: Once verified, Rental Karma reports your rent payments to Equifax and TransUnion.

Benefits of Using Rental Karma

• Boost Your Credit Score: Regularly reported rent payments can help improve your credit score over time.
• Build Credit History: For those with a limited credit history, this is a great way to build a positive credit profile.
• No Additional Debt: Unlike credit cards or loans, reporting rent doesn’t require you to take on more debt.
• Peace of Mind: Know that your good payment habits are being recognized and working in your favor.

Why It’s Worth It

1. Immediate Impact: You can start seeing changes in your credit score within a few months. On average, it takes about 2-6 months to see a significant improvement.
2. Simple Process: Signing up is easy, and Rental Karma handles the heavy lifting of verifying and reporting your payments.
3. Affordable: Using Rental Karma is cost-effective, and with the discount code CityDC20, you can save $30 immediately.
4. Empowers Renters: Reporting rent payments gives renters the power to improve their credit scores without additional financial burdens.

Ready to Boost Your Credit Score?

You can start reporting your rent payments and boosting your credit score today with Rental Karma. It’s quick, easy, and can make a significant difference in your financial future.

Use this link to get started: Rental Karma and don’t forget to use the code CityDC20 for a $30 discount!

Don’t let those on-time rent payments go unnoticed. Take control of your credit score and give yourself the credit you deserve.

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References

TransUnion. (2017). The Impact of Rental Payment Reporting on Consumer Credit Score. Retrieved from TransUnion.

U.S. Census Bureau. (2020). American Housing Survey. Retrieved from U.S. Census Bureau.u.