Reporting rent can boost your credit, but 1 tiny mistake could cost you all the benefits

An increasing number of Americans are seeing their rent payments reported to credit bureaus — but experts are divided on whether this is a benefit or not.

According to a TransUnion survey, 13% of renters saw their payments reported to credit bureaus in 2025, up from 11% in 2024. (1)

Some advocates, including members of Congress and nonprofits (2), say that reporting rent payments to credit bureaus is a way for people who may not have a robust credit history to build credit, which can lead to being able to secure a mortgage in the future.

However, not all renters are self-reporting. According to a CNBC report, some are seeing their property managers reporting on their behalf. (3)

In a CNBC report, Chi Chi Wu, a senior attorney at the National Consumer Law Center, said for some, late payments showing on a credit report of a prospective tenant are “like the kiss of death for landlords.”

For struggling tenants, this could seriously impact their ability to find housing. “What you risk is hampering struggling tenants or even causing them to be homeless.” (4)

So what can you do to ensure rent reporting is actually a benefit to your credit score and your long-term ability to find a good rental home? Read on for our tips on becoming a part of the program and what you need to know if you want to avoid rent reporting.

TransUnion says that the trend of rent payment reporting may increase now that the Federal Housing Finance Agency has issued an order to Fannie Mae and Freddie Mac that will allow mortgage lenders to use VantageScore credit ratings, which include rent payment history reported to credit unions. (5)

However, the TransUnion report also noted that the percentage of property managers reporting rent payments has decreased overall, even as the number of renters whose payments are reported has increased, which suggests that renters are self-reporting through third-party agencies.

If you are always on time with your rent payments, reporting to credit bureaus can help to build your credit score. A 2021 TransUnion analysis found that including rent payments in credit reporting increased people’s credit scores by an average of 60 points.

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Some programs to have your rent payments reported to credit bureaus require you to opt-in, while other programs are automatic and you cannot opt out, Wu told CNBC.

Critics warn that having a late rent payment on your credit history, however, could hurt some renters.

If you want to know whether your rent payments are being reported, you can review your lease or rental agreement, speak to your landlord or property manager, or you can check your credit report. (6)

You are entitled by law to receive one free report annually from each of the three national credit bureaus — Equifax, Experian and TransUnion. You can request your free annual reports at AnnualCreditReport.com. If you see any errors on your report, be sure to dispute them, as they can impact your score.

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According to the CNBC report, renters should be wary if their rent-reporting system is a “full-file” reporter, which means that both payments you make on time and missed payments will be reported.

There are rent-payment reporting programs that are “positive only,” and only report on-time payments. However, Wu from the National Consumer Law Center told CNBC that programs like this can still hurt vulnerable renters, because prospective landlords could still question why there were gaps in the report between on-time payments.

For those who are always able to make their rent payments on time, and who hope to one day become homeowners, reporting your rent payments can help build your credit, and could mean that you’re able to secure a mortgage in the future, and get better interest rates.

But for renters who are not financially stable, or people who would not be able to make their next rent payment if they lost their job or had another emergency, rent-payment reporting could end up hurting them when it comes to securing housing.

According to Experian, even if a late payment is not reported on your credit report, you should be aware that if your landlord is unable to collect your rent, they could also send it to collections.

Experian says that this can damage your credit score even more than the reporting of a late rent payment, as it indicates the debt has been past due for longer. And remember that a late payment or past due rent that went to collections can stay on your credit report for up to seven years.

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

TransUnion (1); Urban Institute (2); CNBC (3); Realtor.com (4); TransUnion (5); Experian (6).

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.