More consumers are using rent payments to increase their credit scores

The Rent Reporting Service tracks a user’s rent payment history and reports it to one or more of the three credit departments: Experian, Equifax, Transunion.

Sharing rental payment activities has been shown to be beneficial, particularly for participants who have “untrustworthy” or have no credit history, experts say.

Those who register usually see their credit scores increase. According to the 2021 Transunion report, if rent payments are included in the credit report, consumers will achieve an average growth rate of 60 points in their credit scores.

Rent Reporting Services can also help younger adults with short credit history and are more likely to rent, Schulz said.

Transunion reports that about 18% of Gen Zers surveyed reported that they had reported rent payments to the credit department. It fell from 26% in 2024, but remains the largest share compared to other generations.

Approximately 16% of millennials surveyed reported rent activity in 2025. This has since been voted by 12% of Gen XERS and 8% of baby boomers surveyed.

Gen Z accounted for 15% of Transunion’s 2,006 respondents. Millennials accounted for 28% of the research foundation, while Gen X accounted for 30%. The baby boomer generation accounted for 27%.

However, not all rent reporting services work the same way, experts say. For example, some people only share on-time payments, while others also report late payments. If you fall behind, the activity will also be reflected in such tools, which will negatively affect your score.

Chi Chi Wu, a senior lawyer at the National Center for Consumer Law, should consider negative outcomes or worst-case scenarios like unemployment before signing up for rent reporting services.

Schultz agreed: “If you’re worried about work, for example, and you’re not sure if you’ll be able to pay rent in six months, it may not be the best time to sign up.”

Ask yourself these 5 questions before signing up.

You may not even need to use your rent payments to improve your credit.

For those with thin or nonexistent credit files, even a small amount of aggressive rent history can “have a real big impact” on their credits, Schultz said. But if you already have a long credit history and a good score, adding another data point doesn’t make much difference, he said.

You will first check your credit score and assess whether reporting your rent payment activity will make a difference, Wu said.

Some rental reporting services are free, but according to apartment listings, you may need to pay in the range of $6.95 to $9.95 per month. Services may also charge a one-time registration or setup fee that can cost between $25 and $95.

Check if the rent report comes to you at an additional cost or if your landlord covers any of the fees.

Make sure your service reports to all three major credit bureaus: Experian, Equifax and Transunion.

Experts say that rental reporting services may only share data with one or two of three stations.

Schulz said this can be a problem when applying for a loan or credit card. If lenders check the report from one of the departments not included in the service, the reported data is “almost irrelevant because we can’t see it,” he said.

Some services simply report full rent payments to the credit department on time, while others may also report late payments, experts say. But even if the servicer only reports positive history, it can be a risk, Wu said.

She reported rent payments for a year and said, “the data is suddenly stopped.”

“Are the future landlord going to see that and make assumptions?” Wu said.

According to Wu, cancellation policies for rental reporting services may vary from provider to provider due to lack of standardization.

Before signing up, find out how to cancel your service and understand what it means, “especially when you’re talking about something related to your credit,” Schultz said.