Boost Your Credit with Rent Reporting, But Avoid This Costly Mistake

An increasing number of Americans are experiencing the impact of rent payment reporting on their credit scores. According to a TransUnion survey, 13% of renters had their payments reported to credit bureaus in 2025, up from 11% in 2024. This trend is viewed differently by experts, with debates on its benefits and drawbacks.

Understanding Rent Reporting

Advocates, including members of Congress and various nonprofit organizations, believe that reporting rent payments could help individuals lacking a strong credit history. This could lead to future opportunities, such as securing a mortgage. However, many renters do not self-report; instead, property managers often report payments on their behalf.

The Potential Downside

According to Chi Chi Wu, a senior attorney at the National Consumer Law Center, having late payments on a credit report can severely hinder a prospective tenant’s chances with landlords. Such negative entries may risk disqualifying struggling tenants from housing opportunities. The risk of increased homelessness is a critical concern highlighted by advocates.

Maximizing the Benefits of Rent Reporting

To ensure that rent reporting positively impacts your credit score, consider these points:

• If you consistently pay rent on time, reporting can elevate your credit score.
• A 2021 TransUnion analysis noted an average score increase of 60 points when rent payments were included in credit reporting.
• Some rent reporting systems require you to opt-in, while others are automatic. It’s important to know which type you are utilizing.

Reviewing Your Rent Reporting Status

To find out if your rent payments are being reported, you can:

• Check your lease or rental agreement.
• Communicate with your landlord or property manager.
• Review your credit report, which you can access for free annually from each of the three major credit bureaus: Equifax, Experian, and TransUnion.

Understanding Reporting Types

Rent reporting systems generally fall into two categories:

• Full-file reporters: These report both timely and late payments.
• Positive-only reporters: These only document on-time payments.

Be cautious with the latter since gaps between payments may still raise questions among landlords.

Implications of Late Payments

Even if a late rent payment is not recorded on your credit report, landlords may take further action if they cannot collect rent. This could involve sending the account to collections, which typically harms your credit score more severely.

Late payments and debts in collections can remain on your credit report for up to seven years, significantly affecting your financial opportunities.

For renters who consistently make payments on time, integrating rent reporting may provide a pathway to improved credit scores and better mortgage rates in the future. Conversely, those facing financial instability should weigh the risks associated with reporting carefully.

Stay informed and proactive to navigate the complexities of rent payment reporting effectively.