Using a rent reporting service is beneficial since you cannot report your payments yourself to the main credit bureaus.
Rental payments should be notified to the main credit bureaus to increase your chances to get a line of credit, but it is something people cannot do themselves.
Their payment history is crucial to increase their credit so they can get more chances from multiple renters to be considered.
What is a rent reporting service?
The function of a rent reporting service is to report your monthly rent payments to the main credit bureaus.
Credit bureaus are in charge of gathering information from people and selling it to landlords or lenders when somebody asks to rent them.
With the information credit bureaus share, they can realize whether the person requesting the most relevant credit score is information that someone rent is a good option.
The credit score is the most important information that someone who is seeking to rent or make a loan should consider and ensure is optimal.
With the credit score, information lenders can see whether someone will pay their rent on time.
How do credit bureaus work?
Before creating a credit what you have is your credit reports. Your credit reports are the information that credit bureaus have from you.
With that information, they know how responsible you have been, and sell that information to landlords and financial institutions for them to know your status. It is a type of people’s rental payment history.
There are three major credit bureaus Equifax, Experian, and TransUnion.
Landlords and renters can report your payments to them so that your rental payment history is clean. The problem is that most of the time they do not do it.
The information they manage can vary depending on the credit bureau, but in general, they manage information regarding name, address, date of birth, previous addresses, employment history, tradelines, and inquiries.
How do rent reporting services work?
On-time rent payments enhance your chances to get a line of credit easily when you do proper ongoing reporting.
Rent reporting services report rent payments to the three major credit bureaus so that you do not have to worry about whether you have a good credit history.
Only rent reporting services increase the chances for you to get a line of credit. They are in charge of maintaining adequate credit scores.
Free rental history reporting can only come from the rent payments reported by landlords or renters. Otherwise, you have to pay for rent reporting services.
A rent reporting company or service reports credit bureaus about your past rental payments so that lenders and financial institutions such as banks can see if you are a responsible person.
Ongoing payments report increases your chances to afford a line of credit and to improve your credit score in your credit accounts.
Lenders use credit ratings to assess whether to approve loan applications and what terms to offer.
Your credit reports’ information, which includes a summary of your borrowing history, is used by algorithms to create the scores.
Two major credit scoring companies manage the information provided by lenders or rent report services to create the credit score.
Those two major credit scoring companies are FICO and VantageScore. They vary in how they manage the information and what they consider more or less relevant.
How do rent payments help people?
Only rent payments do not help people on their own. They may help but on a minimal scale since the current lender or landlord would be the only person who notices the person’s responsibility.
Ongoing reporting rent using rent reporting services enhances your chances to improve your credit score and get higher credit from lenders and financial institutions.
You should know that the only way reporting service is the way you can get more chances to get a line of credit.
Using a rent reporting service people can keep credit bureaus on top of their ongoing rental payments. Therefore, you can improve your credit score.
Past rental payments are a crucial factor that both lenders and financial institutions consider.
Can I increase my credit score by reporting my rent payment?
Ongoing reporting services can help people increase their credit scores since they provide information to major credit bureaus about their rental history and past rent payments.
A rental history reporting service provides your credit score and rents payment history so lenders can decide what limitations you have.
The purpose of many rent reporting services is to increase people’s chances to build credit and get more chances to get a line of credit and a high credit score.
The online rent payment history provides people with more chances to get a higher credit score.
Using a rent reporting service is crucial to increase your credit since there is no way for you to do it yourself. The rent reporting company will inform credit bureaus about your ongoing reporting so that you do not have to worry when your lenders forget to do it.
Having an optimal payment history provides you with more chances to get more credits in case you have multiple renters.
What is the best rent reporting service?
Using a rent reporting business is necessary when you want to build credit, especially when you have multiple renters.
The reporting service you use will increase your chances to get more credit by informing timely rent payments and your rental payment history to credit bureaus.
1. Boom
Boom is an app that handles your rent payment and sends it to the three main credit bureaus.
The costs are the lowest of any other rent reporting firm, but you must use a rent portal or a direct withdrawal from your bank account to pay your rent.
Boom requires a $24 yearly subscription; if you’d rather use it on a month-to-month basis alone, you’ll pay $3 each month.
You are not charged a price to cancel at any time.
Boom says that within ten days of submitting your on-time rent payment performance to the credit bureaus, your credit score increased by 5-100 points for its customers.
2. Rental Kharma
It requires a $50 one-time setup fee for this service, which also provides a record of your previous six months’ rent payments.
You can pay an extra $60, and the rent reporting service will ensure that the prolonged payment history is reported to the credit agencies.
You can add a second renter for $25; if both of you sign up at once, the fee will be $60 to cover both of you.
For the first tenant, ongoing monthly reporting costs $8.95, and for the second, it costs $5.
According to Rental Kharma, after two to three years, the average credit score rises by 29 points.
3. Rock The Score
The initial registration charge for this rent reporting service is $48 and the monthly maintenance fee is $6.95.
The cost to disclose a rental history spanning up to two years is $65.
Rock the Score submits records to Equifax and TransUnion. They can use the cost-effective rent reporting services provided by Rock Your Score.
If you’re trying to buy a home or automobile, they offer a smart reporting option that may add up to 24 months of credit history in less than 30 days. All you need to do is register with Rock The Score, and it will get in touch with your property manager or landlord to verify your prior payments to establish your credit history.
Additionally, you should ensure to have a copy of your lease or rental agreement available so you can give it to them.
If you’re looking for a way to build your sales funnel, add quizzes, and customizable checkout pages with one click of a button, Samcart is one of the best eCommerce sites to start with.
4. Rent Reporters
Ten years into operation, RentReporters has a solid reputation for dependable customer support.
It is the only rent reporting service that will report your past rental history for no additional cost, and it will do it for up to two years.
This service has a higher initial cost; the enrollment charge is $94.95 for the service.
You can sign up as an extra renter and save $50 on their registration fee.
The next option is $9.95 each month, or you can purchase an annual plan for an additional $95.40 upfront, or $7.95 per month.
So if you want to focus on only selling digital downloads or basic memberships, Payhip is an excellent option.
Conclusion
Rent reporting services help people get a high credit score by informing the main credit bureaus about their rent payments.
Renters are unable to record their rent payments to credit bureaus.
People should sign up for rent reporting services that confirm their payments for the credit bureaus for their rental payment history to be considered when calculating their credit history.
Rent reporting services offer reporting alternatives, such as the ability to disclose past rental history so it can be considered when generating your credit report.
