Consumers Leverage Rent Payments to Improve Credit Scores: What You Need to Know

A growing number of renters are reporting their rent payment activity to credit bureaus to build or improve their credit, according to a new TransUnion survey of 2,006 renters. The share of renters whose payments are reported rose from 11% in 2024 to 13% in 2025. Rent reporting services track a tenant’s rent payment history and report it to one or more of the major credit bureaus—Experian, Equifax, and TransUnion. These services are particularly beneficial for “credit invisible” consumers who have little or no credit history. Enrollment often results in an average credit score increase of 60 points.

Younger renters, particularly Gen Z, benefit most due to shorter credit histories and a higher likelihood of renting. In 2025, about 18% of Gen Z renters reported their payments, while 16% of millennials, 12% of Gen X, and 8% of baby boomers did the same. The survey included 15% Gen Z, 28% millennials, 30% Gen X, and 27% baby boomers, reflecting a diverse sample. Experts note that sharing rent payment history helps consumers establish or improve credit and facilitates better access to financial opportunities.

However, not all rent reporting services operate identically. Some report only on-time payments, while others may include late payments, which could negatively impact a consumer’s credit score. Potential enrollees must consider scenarios such as missed payments or job loss, as these could affect outcomes. Senior attorney Chi Chi Wu advises weighing worst-case consequences before enrolling, and Matt Schulz recommends careful timing, especially if job security is uncertain.

Before signing up, renters should ask five key questions. First, is reporting necessary? For those with thin or non-existent credit files, even small positive rent histories can significantly improve credit. Conversely, consumers with long, well-established credit histories may see minimal benefit. Checking one’s current credit score helps determine the necessity.

Second, what is the cost? Some services are free, while others charge $6.95 to $9.95 per month or a one-time setup fee ranging from $25 to $95. Consumers should determine if fees are covered by landlords or paid out-of-pocket. Third, does the service report to all three major bureaus? Reporting to only one or two bureaus may limit the impact when applying for loans or credit cards. Comprehensive bureau reporting ensures the activity is recognized by lenders.

Fourth, what data is reported? Services vary in whether they report only timely payments or also late payments. Abrupt gaps in reporting or partial data could lead future landlords or lenders to make incorrect assumptions about financial behavior. Understanding what is reported helps avoid surprises.

Finally, what is the cancellation policy? Policies vary across providers due to a lack of standardization. Consumers should be aware of how to cancel the service and the potential credit implications. Schulz emphasizes understanding these conditions before enrollment, as rent reporting directly impacts credit history.

In conclusion, rent reporting is a growing trend among renters seeking to build or improve credit scores. When carefully considered and properly utilized, these services provide tangible benefits, particularly for younger renters or those with minimal credit history. Consumers must evaluate necessity, costs, bureau coverage, reported data, and cancellation policies to ensure the process enhances their financial profile while avoiding unintended negative consequences. By thoughtfully engaging with rent reporting services, renters can leverage everyday rent payments to strengthen creditworthiness and improve overall financial opportunities.