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Does Paying Rent Build Your Credit?

7 min read

Last Updated: June 18, 2025

Table of contents

Key Takeaways

Rent payments sent to credit bureaus may build your credit if you consistently pay on time.
Landlords don’t automatically report rent payments to credit bureaus.
Some landlords may offer a rent-reporting service option.

Some monthly bills, like a mortgage or credit card payment, may automatically appear on your credit reports and influence your credit score. However, rent doesn’t always work the same way. Because rent isn’t connected to a credit account, the major credit bureaus don’t typically receive a record of your past rent payments to include on your credit report. Your monthly rent payment can still boost your credit score, but you typically have to start the reporting process.

How can a rent payment help with building credit?

A positive, consistent history of timely loan and credit card payments is crucial for building a strong credit score. Your history of positive rent payments may also improve your score, but it usually takes a few extra steps.

While apartment applications often include a hard credit inquiry, your rental agreement isn’t technically a credit account. That means a credit reporting agency won’t automatically receive your rental payment information.

Not every recurring payment you make is reported to a credit reporting agency. Rent, utility payments, and phone bills are some of the accounts that don’t usually report to a credit bureau. Rent payments need to be reported to a major credit bureau in order to be included on your credit report.

Though it’s an uncommon practice, your landlord or housing provider may already use a service that reports rent payments to credit bureaus. If not, you can request that they use a rent-reporting service or enroll in one yourself. But before you take that step, it’s worth considering whether your rental payment history would benefit your credit.

When should you use rent payments to build your credit history?

Adding your rental payment history to your credit report may help you build credit history without opening a new credit account. If you have limited credit history or are working to improve a bad credit score, this extra boost can really help. But you’ll only benefit if you consistently make timely rent payments.

You may not want to report your rent payments to a credit bureau if you’re concerned about paying rent on time. A late rent payment can seriously hurt your credit score if it appears on your credit report.

Of course, you should always try to pay your rent by the due date. But when you’re working on building credit history, it’s extra important to make sure all your payments that are reported to a credit bureau are made on time.

When does your rent payment get reported to a credit bureau?

A payment made directly to your landlord might not become part of your credit history unless your landlord lets you request rent reporting.

Landlords typically have to use third-party rent-reporting services to make sure the major credit bureaus receive your rental payment information. As a tenant, you may also be able to use a rent-payment-reporting service on your own.

What is a rent-reporting service?

A rent-reporting service is a company or organization that collects your verified rental payment information and shares it with major credit bureaus. Many rent-reporting services require landlords to opt in, but some work directly with renters instead.

What to consider when picking a rent-reporting service

Many companies offer rent-reporting services. To find the right fit, consider the following questions:

What payment information is reported? The Department of Housing and Urban Development explains that some rent-reporting services only report positive payment information. Others share all your rent payment information, including every missed or late rent payment. Some may also report information about past rent payments.
What’s the total cost? Some rent-reporting services are free, some charge the landlord, and some charge the tenant. Make sure you and your landlord are on the same page about costs before enrolling.
What types of payments count? Whether you typically pay rent online, or by cash, check, or money order, you should make sure the rent-reporting service recognizes those payments.
What data security protocols are in place? Rent payment reporting services handle sensitive data. Make sure there are measures in place to prevent fraud and identity theft.
What happens if there’s a rental dispute? In some states, tenants may legally withhold rent in certain situations. It’s important to understand how a rent-reporting service may handle that scenario, and if withheld rent could hurt your credit score.
What credit bureaus does the service report to? All three major credit bureaus accept rent payment information, so ideally, a rent-reporting service should deliver the information to all three.

Can paying rent with a credit card build credit?

You may also be able to build credit history by making your monthly rent payment with a credit card. But using credit to pay rent poses some risks.

Rent may be your highest single monthly expense. Even if it’s not, housing costs still likely make up a major portion of your budget.

If you don’t repay your balance right away, charging your monthly rent to your credit card may dramatically increase your credit utilization ratio. Your growing balance may quickly accrue interest, making it easier to fall behind on bills. Missed or late credit card payments and high credit utilization could seriously damage your score.

Fortunately, you may avoid those negative credit consequences by repaying your balance in full each month. You might even opt to repay your credit card balance as soon as the rent payment is processed.

Paying rent with a credit card may help you earn a lot of credit card rewards as you build a positive payment history. But many landlords charge a service fee when you pay rent with a credit card, so you may want to calculate whether the rewards you could earn offset the fee.

Did you know?

The Discover it^® Cash Back Card lets you earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, automatically earn 1% cash back on all your other purchases.

Learn More

Other ways to build credit

Rent-reporting may not be the right fit for every situation. In that case, consider other credit-building tools to help you reach your goals.

Get a secured credit card

If you have trouble qualifying for an unsecured credit card, you might consider a secured credit card instead. The primary difference is that a secured card requires a refundable deposit at account opening. The credit limit typically equals that deposit amount. So, if you don’t make payments, the card issuer may use your deposit to cover the balance and close your account.

With responsible habits, a secured credit card may help you build credit history. After you maintain timely payments and a minimal balance for several months, you may qualify for an unsecured card with a higher credit limit.

Become an authorized user

You could build credit history without opening a credit card of your own by becoming an authorized user on a trusted friend or family member’s account.

Authorized users may receive a card in their name but aren’t responsible for making payments or managing the account. Both your card activity and the primary cardmember’s activity may influence your credit score. As long as you both make responsible credit decisions, becoming an authorized user can help you build your credit score.

Report utility payments to credit bureaus

Like rent, utility bills (like water, electricity, heat, and internet) aren’t automatically reported to the credit bureaus. However, some services may allow you to report your utility payments so they appear on your credit report. As with rent-reporting services, just keep in mind that it’s particularly important to pay your utility bills online if they’re being reported to credit bureaus.

The bottom line

Your timely rent payments may boost your credit score if you (or your landlord) report them to the major credit bureaus. Staying on top of rent payments isn’t always easy, so it’s encouraging to see your credit report reflect your hard work. But make sure you understand the risks and do your research before signing up for a rent-reporting service.

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