Rent Reporting Services To Build Credit Score: How Does It Work For Renters?

Rent is one of the biggest monthly expenses for millions of tenants, yet it rarely shows up on a credit report. For renters trying to build or rebuild a credit score, this gap can feel frustrating—especially when payment history makes up the largest share of most scoring models. With more renters looking for alternatives to traditional credit-building pathways, rent reporting services have emerged as a practical solution.

These services allow renters to use the payments they're already making to create or strengthen their credit history. Here's how they work, what to consider, and how renters can decide if rent reporting is right for them.

Why Rent Hasn't Historically Counted Toward Credit Scores

Despite being a major recurring payment, rent has never been included by default in credit reports. As a result, many renters remain "credit invisible," even if they've never missed a month's payment.

This gap matters. Credit scores influence roughly 90% of lending decisions in the United States. Newer scoring models like VantageScore and FICO 9/10 do include rental data, but older versions—such as FICO 8, still used by some lenders—may ignore it entirely. That means renters who don't have credit cards, auto loans, or other traditional accounts often struggle to establish a score at all.

What Rent Reporting Services Actually Do

Rent reporting services collect information about on-time rent payments and report it to one or more major credit bureaus—Experian, Equifax, and TransUnion. There are two core pieces of the process:

1. Verifying Payments

This can happen in a few ways:

• Direct verification from a landlord or property manager.
• 3rd Party Apps that you must connect your checking account to validate payments

2. Transmitting Data to Credit Bureaus

• This is done by the 3rd party company you hire to report your rent.
• Some large property management companies report directly to the bureaus.

Once verified, rental payments create a new account on the renter’s credit report.

Types of Rent Reporting Services

Landlord-Initiated Programs

Some landlords subscribe to reporting systems as part of their property management tools. Tenants simply opt in, often at no extra cost.

Renter-Initiated Programs

Renters can also sign up independently. These services usually charge a monthly or annual fee and allow tenants to submit and verify their payments. Some offer the option to add past payments for an additional charge.

How Rent Reporting Can Strengthen Credit

For many renters, the impact can be meaningful:

• Creates a credit history for those with no previous score.
• Uses existing expenses, allowing renters to build credit without taking on new debt.
• Boosts existing scores, with some providers reporting increases ranging from 30 to over 100 points depending on the individual.
• Supports access to financial products, including better interest rates and improved approval odds for credit cards, housing, and loans.

Because payment history makes up 35% of a FICO score, consistent on-time rent payments offer a practical way to strengthen a credit profile.

Step-by-Step Guide for Renters Considering Rent Reporting

For renters interested in using a rent reporting service, the process is straightforward:

1. Check With Your Landlord

Some property managers already partner with rent reporting platforms.

2. Compare Third-Party Services

If the landlord doesn't offer a program, renters can choose an independent provider. Key considerations include:

• Cost.
• Which bureaus are included.
• Whether past rent can be added.
• Verification method (landlord verification, or liking a bank account).

3. Sign Up and Verification

Most services require:

• Account creation.
• Identity verification.
• Authorization to track or verify payments.

4. Set Up Payment Verification

Renters either pay rent directly through the platform or link a bank account so the service can confirm payments.

5. Monitor the Credit Report

• It typically takes just days for the new account to appear.
• Renters can review reports for free at creditkarma.com.

Expert Insight: What Industry Providers Want Renters To Know

Experts in the rent reporting industry emphasize one crucial point: on-time payments matter more than anything else.

Specialists at Rental Kharma, a rent reporting provider, note that while rental data can help build or improve scores, late or missed payments may also be reported—depending on the service—and could harm a credit profile.

If you're looking to build or strengthen your credit profile without taking on new debt, rent reporting can be a practical, low-effort option. And if you need help understanding how rental data affects your score, rent reporting experts are always happy to aid you in making an informed decision.