Credit Reporting

In this Article


Have you ever wondered how your rental payments affect your credit score? Or why your lease appears as an installment loan on your credit report? We've compiled answers to these common questions and more to help you better understand the impact of rental payments on your credit history.

Will my rental payments affect my credit score?

Yes, your rental payment history can influence your credit score. Positive rental payment information is included as part of your standard credit report and may be factored into certain credit scores, such as VantageScore®1 and Experian's PLUS Score®. These credit scores take into account your payment history, including timely rental payments.

Can I improve my credit by paying my rent on time?

Absolutely! By consistently making on-time rental payments, you can establish or rebuild your credit. The inclusion of positive rental payment history within your Experian credit report allows you to demonstrate responsible financial behavior, which can positively impact your creditworthiness. This, in turn, can help you qualify for better credit products in the future.

How will lenders use my rental payment information?

Lenders may consider your rental payment history when assessing your ability to repay new debt. While each credit grantor has its own criteria for granting credit, your positive rental payment history can serve as evidence of your financial responsibility and repayment habits.

Why does my lease appear as an installment loan?

Your lease is categorized as installment credit, similar to an auto loan. Installment credit involves making regular payments of a fixed amount over a set period, typically measured in months or years. Thus, your lease is considered an installment loan due to its structured payment schedule.

Why does my credit report show a credit limit for my lease when it is not a line of credit?

Experian calculates an "original loan amount" for your lease, which represents the total sum of payments you will make throughout the lease term. For example, if you have a 12-month lease with a monthly payment of $1,000, the original loan amount would be $12,000. Although some credit report systems may display this amount as a credit limit, it does not imply that you have a line of credit or received a loan.

Why does my credit report show an outstanding balance for my lease when I don't owe any money?

The outstanding balance or "current balance" displayed on your credit report represents the total amount of rental payments remaining on your lease. It denotes the sum you will be responsible for paying over the remainder of the lease term. As you make monthly rent payments, the outstanding balance will gradually decrease.

What should I do if I find an error or encounter a problem with my credit report?

If you discover an error or have concerns regarding your credit report, you can initiate a dispute through Experian's National Consumer Assistance Center. You can contact Experian toll-free at 1-888-EXPERIAN (1-888-397-3742) or access a dispute form online at www.experian.com/disputes/main.html. Upon receiving your dispute, Experian will investigate the issue and provide you with the results within 30 days.

Credit Education and Additional Resources

To gain a better understanding of your credit, consider visiting www.experian.com/rentbureaucrediteducation. This resource provides valuable information to help you navigate your credit journey effectively.

Additionally, Experian offers Credit EducatorSM2, a service that provides a one-time, one-on-one telephone-based education session. This session includes a copy of your Experian credit report and score, a step-by-step walk-through of your personal credit report, and insights for future decisions in personal credit management. To learn more or schedule an appointment, call 1-877-858-5308.

About Experian RentBureau

Experian RentBureau gathers updated rental payment data every 24 hours from its network of property management companies nationwide. Positive rental payment data is then incorporated into Experian credit reports, helping you build a comprehensive credit history. To learn more about Experian RentBureau, visit www.experian.com/rentbureau.

Understanding how rental payments are reported and utilized in credit assessments empowers you to make informed decisions and manage your credit effectively. By paying your rent on time and staying aware of your credit standing, you can pave the way for a brighter financial future.

Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.

Still need help? Contact Us Contact Us