Does Renting an Apartment Help Build Credit?

Building credit is a big part of reaching your financial goals. Whether you’re planning to buy a car, apply for a mortgage, or open a personal Line of Credit, a strong credit history can open many doors. 

Here’s how paying rent can help you build a stronger credit history. 

Can paying rent build credit? 

It can, but not automatically. Rent payments typically don’t get reported to the major credit bureaus unless your landlord uses a rent-reporting service. This means even if you’re paying rent on time every month, it may not help your credit score unless it’s being officially tracked. 

If your rent is being reported, those on-time payments can have a positive impact on your credit. But it works both ways — late or missed rent payments may also show up on your report, which could hurt your score. 

How to report your rental payments 

If building credit is a priority, talk to your landlord or property manager about whether rent payments are being reported. You can also explore third-party rent-reporting services on your own. Just make sure you understand the costs, terms, and how your data will be used. 

Options through your landlord 

Some landlords and property managers use third-party services to report rent payments. When that’s the case, your on-time payments may boost your credit score over time. 

For instance, if you’re renting a Fannie Mae-financed property, you may be eligible for free reporting through the Positive Rent Payment Program. Other services landlords might use include: 

• ClearNow
• PayYourRent
• Rent Dynamics
• Esusu 

You can’t control whether your landlord enrolls in a rent-reporting service, but it’s worth asking. 

Options for renters: DIY services 

If your landlord doesn’t participate in rent reporting, you still have options. Some platforms let you take the lead by self-reporting your rent directly — giving you credit for payments you’re already making. 

Keep in mind: 

• Some services charge a one-time fee or monthly subscription.
• Your landlord may need to verify the payments for the reporting to work. 

Here are a few options to consider: 

Before signing up, make sure you understand the costs, what’s included, and how your information will be used. 

Make monthly rent payments with your credit card 

Using a credit card to pay rent is a straightforward way to help build credit — if you pay off the balance in full each month. This shows consistent, responsible credit use. If you’re just starting out or rebuilding credit, a secured credit card could be a smart place to begin. 

Just be cautious. Unpaid balances and interest can add up quickly, increasing your debt and potentially lowering your score. Some landlords also charge fees for credit card payments, so make sure to review your options before choosing this method. 

How your credit score affects your ability to rent 

Your credit score is one of the first things landlords look at when you apply for an apartment. It gives them a sense of how likely you are to make payments on time, which can influence whether your application is approved. 

Having a lower credit score doesn’t automatically mean you’ll be denied, but it may raise questions. That’s why understanding what landlords check — and how you can improve your standing — can make a big difference. 

Payment history 

Landlords want to see if you’ve been consistent with your payments in the past. This includes credit cards, loans, and sometimes past rent. Missed or late payments can signal risk, while on-time payments help build trust. 

Credit utilization 

Credit utilization refers to how much of your available credit you're using. If you regularly use a large portion of your credit limit, landlords may view it as a sign of financial strain. Keeping your balances low can help show that you manage credit responsibly. 

Length of credit history 

The longer your credit history, the more insight a landlord has into your financial habits. A well-established track record, especially with consistent payments, can work in your favor. 

Credit inquiries 

Landlords may also look at how many recent credit inquiries appear in your report. Too many in a short time can suggest financial stress or that you’re taking on new debt, which may raise concerns. 

How does your rental history affect your credit? 

In most cases, it doesn’t affect your credit because rent payments often aren’t reported. 

But when rent is reported, it shows up on your credit report like any other account. That means on-time payments can help build your credit history, but missed or late payments can lower your score. 

How do landlords evaluate prospective tenants? 

When you apply for a rental property, landlords often do more than just glance at your application. They use several tools to help them understand whether you’re financially reliable. Here’s where they usually get that information: 

Major credit bureaus 

The most common way to assess an applicant's creditworthiness is to pull credit reports from the three major credit bureaus (Equifax, Experian, and TransUnion). These credit bureaus collect and maintain information about your credit, including: 

• Your payment history
• How much credit you’re using
• How long you've been using credit 

Landlord associations 

Because most rent payments don’t show up on your credit report, some landlords rely on landlord associations. These organizations offer screening tools, best practices, and resources to help property managers make informed decisions and protect their properties. 

Landlords who are members of these associations may use specialized services that go beyond a credit check — like tenant screening reports, rental history data, and background checks. 

Tenant screening services 

Tenant screening services play a crucial role in the rental process. They give landlords a deeper look at your background, including credit reports, rental history, and other factors that help them make informed decisions. 

While these services don’t directly impact your credit score, they can support your credit-building efforts if your landlord uses the platform’s rent-reporting feature. 

5 tips for renting an apartment with bad credit 

Having less-than-perfect credit doesn’t mean you can’t rent — it just means you might need to take a few extra steps to show landlords you’re a responsible tenant. Here are some ways to strengthen your application: 

1. Offer a larger security deposit 

Putting down money upfront can help ease a landlord’s concerns. It shows that you’re financially prepared and willing to go the extra mile. 

2. Provide references and proof of income 

Bring written references from previous landlords along with proof of your current income. This gives landlords confidence that you’ll be reliable with rent, and that others have had a good experience renting to you in the past. 

3. Get a co-signer with good credit 

If someone you trust is willing to co-sign your lease, it can go a long way. A co-signer shares the responsibility for rent if you’re unable to pay, which may help landlords feel more comfortable approving your application. 

4. Pay some of the rent in advance 

Offering to prepay a portion, such as the first two months' worth of rent upfront, can show commitment and reduce risk for the landlord. You may need to take out a personal loan to cover multiple rent payments at once, but it may be worth the effort to secure an ideal living situation. 

5. Consider moving in with a roommate 

Sharing an apartment with a roommate can lower the costs for both of you — and boost your chances of getting approved. If your roommate or co-applicant has stronger credit, some landlords may be more willing to overlook any credit issues you may have had in the past. 

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