Looking to improve your credit score? A good credit score can help you access the best credit cards, get insurance discounts, get the lowest interest on loans, and get approved for housing rentals. Luckily, doing this is easier than you may think.
Your credit score can be improved by paying your rent online. Doing this allows you to record your payment history, gathers the information that credit bureaus need, and allows you to use a credit card for an added boost. Here is how it works.
Why should I pay rent online?
“Simply paying your rent will not help you build credit,” says Bev O’Shea at NerdWallet. “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 do you make sure your rent payments are reported? At The Jackson Apartment Homes, we offer an online rental payment system that reports information to the credit bureaus. This way, each time you pay your rent on time and in full, it will directly contribute to and improve your credit score! Sounds like a pretty good deal, right?
How does this tie into my credit score?
You may be wondering how this would even affect your credit score. Let’s first look at what goes into determining a credit score. Experian, for example, determines credit scores through the following elements:
- Use of credit cards
- Payment history
- Applications for new loans and credit
Paying your rent online will affect your payment history, gathering the information that credit bureaus need. This will make a good impact on your credit score when you make these payments.
Why should I pay with a credit card?
In addition to paying your rent online through our resident portal, you could improve your credit score further by using a credit card to make these payments.
“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.” Using a credit card to make your payments can be a simple yet effective way to turn your rent payment into a way to gain the benefits associated with using a credit card.
So, give your credit score a boost by paying your rent online. As you do so, your payments are recorded and will provide you with the necessary payment history for the credit bureaus. Plus, if you choose to pay rent with a credit card, you can increase your score even more. We wish you the best of luck in improving your credit score!