How To Establish Credit While Renting
It may seem impossible, but building credit while renting isn't as hard as many would think. Here are a few tips you can incorporate into your routine to see a hike in your credit score, even as a renter.
Report Your Rent Payments to Credit Bureaus
While your on-time rent payments do not impact your credit on their own, you can report your rent payments to credit bureaus to show that you are a responsible tenant who pays your bills on time. This can boost your credit score at up to 40 points! Be sure to check with your landlord or property manager to see if they are already reporting rent payments to credit bureaus.
Use Credit Cards Responsibly
Credit cards can be tempting due to the fact that you don’t necessarily have to pay that money back as soon as you spend it. However, accruing too much credit card debt can have a seriously damaging effect on your credit score, and can end up costing you hundreds, if not thousands, more in the long run.
Pay Off Debt Early, If You Can
Whether it’s a personal loan, business loan, credit card, student loan, auto loan, or anything in between - paying off your debts ahead of schedule can greatly impact your credit score, as it shows you are a responsible borrower and can in turn allow you to take our larger loans and credit limits to even further boost your credit score! Two birds, one stone.
Monitor Your Credit Reports
While not overly common, credit report errors do happen! Keeping on top of your credit reports and credit score is a great way to ensure your credit is not being negatively impacted by something out of your control. Oftentimes, your credit reports will even include tips for how to raise your score and eliminate any debt you may have.
Always Pay On Time
Although it’s easier said than done, paying off your loans, debts, and bills is one of the easiest and most effective ways to boost your credit score, especially as a renter. Many programs today even offer support if you request it for helping to pay your bills on time with little, if any, impact to your credit. Always look for these options before deferring a bill or payment, because oftentimes, that can become a rabbit hole that’s extremely difficult to get out of.
Building your credit, even as a renter, doesn’t have to be scary! Take advantage of these tips and continue to spend responsibly in order to see that credit score shoot up sooner than you may think.
Don’t forget, if you want to shop our luxury apartments in Austin and other RPM communities across the US, check out our Communities page.