How To Improve Your Credit Score With Rent Payments
To increase resident adoption and improve customer satisfaction at your properties, we are able to provide an absolutely free credit reporting feature.
By: Nick Massie / 2018 / PayYourRent.com
We designed our online payment solution with both residents and property managers in mind. To increase resident adoption and improve customer satisfaction at your properties, we are able to provide an absolutely free credit reporting feature. This feature reports all on-time payments immediately to each of the credit bureaus at the time of payment transactions happen, and your residents will reap the rewards in their credit score.
Residents improve their credit score! PayYourRent reports on-time rent payment to the three major credit bureaus.
If your residents are one of the many Americans trying to improve their credit score, they will be ecstatic to learn that their on-time rent payments are being reported automatically to each of the three major credit bureaus. This overlooked benefit will contribute to the improvement of their credit score over time.
Unfortunately, this little-known credit building technique is not as common as it should be, many people don’t know that such a service is available. Your adoption rate will increase signigicantly when residents know this possible and want get started right away.
How does rent history improve credit score?
Many people are unaware that timely payments account for roughly 35% of their overall credit score.
Using PayYourRent services will record each monthly payment and reports it to all three major credit bureaus (Experian, Equifax and TransUnion). According to credit.com reported rent payments can directly improve credit IF reported. The key word here is “if.”
In order for positive rent payment data to be reported, a landlord or property manager collects and reports each payment to the credit bureau. Residents cannot report their own payments to the credit bureaus for security and fraud prevention reasons. That is why the free feature from PayYourRent is so beneficial to the residents. The credit reporting features are included with each on-time rent payment made using our service. It’s a win-win situation for both residents and property managers.
How do rent payments appear on a credit score?
Rent history will be set up similar to an auto loan or other monthly credit line when viewed on a credit report. Positive rental history will additionally benefit residents by recording their history in the screening products offered by the bureaus.
Vantage Score, FICO 9 and many other data collection agencies are incorporating rent into their models as well. For younger residents who don’t have a long credit history or even no credit at all, these monthly rent reports will assist in building credit.
Building good credit isn’t the only PayYourRent feature that residents benefit from.
The option to passively build credit using PayYourRent is a huge win for residents, but the benefits don’t stop there. Our service allows residents to easily file maintenance requests, connect utilities online, and even fill out digital applications for properties. PayYourRent can be used by a phone, tablet or desktop computer, making it easily accessible from anywhere.
Are you ready to learn more? Schedule a free consultation today to see how we can help your property management business run more efficiently.