One of the topmost questions of people is whether it is even worth it to report your rent to the credit bureaus. The answer will depend on why you want to increase your credit score in the first place and whether you have a good rental history.
For example, if you want to buy a house in the next two years, increasing your credit score even just by a few points can spell the difference between getting qualified for a mortgage and not being considered at all. Let’s say you want to get an FHA Loan, you need a credit score of at least 580. If your credit score is below 580, you can certainly benefit from getting a 30-point increase by reporting your rent payments.
It is also a good idea to have your rent reported if you are trying to increase your credit score to get better deals on future purchases. Let’s say your credit score is at around 760 and you want to have a score of 780 and above to have an excellent credit rating, reporting your rent could be one way to increase your score especially if you have a spotless rent history.
When you have an excellent credit rating, you can enjoy many perks. You can get the best offers when making purchases which will result in a lot of money saved. The savings that you could enjoy can be worth paying the monthly fee charged by rent reporting companies.