Rent Payments & Credit Scores: Are You Missing Out?

Reporting Rent Payments Can Unlock Credit Scores for Millions, Says Esusu

June 13, 2025
– A Groundbreaking initiative is underway to transform how millions of americans build credit. The focus?
Reporting rent payments.

With an estimated $1.4 Trillion annually exchanged between renters and landlords, the fact that only 20% of landlords report those payments to credit bureaus represents a massive missed prospect.
This underreporting significantly impacts renters’ credit scores and overall financial well-being.

The Credit Invisibility Crisis

Timely
rent payment reporting
can substantially improve credit scores. Though, the current lack of widespread reporting leaves many renters “credit invisible,” hindering their access to loans, vehicles, and homeownership.
More than 50 million Americans lack a credit history with major credit bureaus.

Wemimo Abbey, CEO and Co-Founder of Esusu, a company featured on the 2025 CNBC Disruptor 50 list, highlighted the urgency of the situation. “We’re leaving over $5.3 trillion on the table. We’ve got to do better,”
Abbey stated during an interview on CNBC’s “Worldwide Exchange.”

esusu is tackling this problem head-on by partnering with 75% of the largest rental companies and creating a direct channel for renters to report their rent payments. “We have democratized access because you have a long tail of people who don’t live in commercially managed housing,”
Abbey explained.

Deals with major players like Goldman Sachs, Mercy Housing, and Cushman & Wakefield, along with partnerships with Fannie Mae and Freddie Mac, are expanding Esusu’s reach to increase the number of units that report rent as part of credit-building nationwide.

Understanding Credit Scores and Their Impact

Credit scores, ranging from 300 to 850, reflect an individual’s ability to repay debts. Low or nonexistent credit scores make lenders wary,potentially leading to high-interest rates or loan denials. Some landlords also use credit scores to evaluate rental applications, so
reporting rent payments
can significantly help.

This issue disproportionately affects minority communities.Data from Oliver Wyman indicates that approximately 26% of Hispanic and 27% of Black consumers are credit invisible or unscorable, compared to 16% of White and Asian consumers. Immigrants often face similar challenges, as their credit history from their home countries is not considered in the U.S.

Abbey and Co-Founder Samir Goel’s personal experiences as immigrants motivated them to start Esusu, witnessing their families’ financial struggles firsthand.

“When we came here, we didn’t have a credit score…we were turned away and had to go borrow from a predatory lender who wanted to lend at over 400% interest rate,” Abbey recounted. “My mother sold my dad’s wedding ring…we borrowed money from church members, and that’s how we got started.”

As its inception, Esusu has helped establish credit scores for 250,000 Americans, leading to $50 billion in credit activity. The startup’s valuation has now reached $1 billion, reflecting the high demand for its services.

The Power of Rent Reporting

For most renters, rent is their most important monthly expense. Despite over 90% of renters paying on time, these payments often go unreported, providing no benefit to their credit scores.

Rent payment reporting
can be initiated by either the landlord or the tenant. While larger,commercially managed properties may already have connections with credit reporting services,they might charge a fee for the service.

Renters can also directly engage with services like Esusu, which charges a nominal monthly fee to report timely payments. These payments typically appear on credit reports within 30 days. It’s crucial to pay rent on time, as late payments can negatively impact credit scores.

Did You Know? According to a 2024 Experian study, individuals who started reporting rent payments saw an average credit score increase of 29 points within six months.

Alternative Ways to Build Credit

Besides
reporting rent payments,
several other strategies can help build or improve credit scores.
Becoming an authorized user on a credit card, securing a credit card (often requiring a security deposit), or using a credit-builder loan are all viable options, particularly for those with limited or no credit history.

Pro Tip: Always ensure that any credit-building activity is reported to all three major credit bureaus (Experian, Equifax, and TransUnion) for maximum impact.

The Landscape of Credit Reporting Services

The table below compares rent reporting services, highlighting key features:

Service	Monthly Fee	Reports To	tenant or Landlord
Esusu	$2.50	All 3 Bureaus	Both
Experian RentBureau	Varies	Experian	landlord
RentTrack	$6.95 – $11.95	All 3 Bureaus	Both

Are you currently
reporting rent payments? What steps are you taking to build or improve your credit score? Share your thoughts below!

Evergreen Insights on Credit Building

Building good credit is a marathon,not a sprint. Here’s some evergreen advice.

• Pay Bills On Time: Consistent on-time payments are the most significant factor in your credit score. Set reminders or automate payments to avoid missed deadlines.
• Keep Credit Utilization Low: aim to use no more than 30% of your available credit.Lower utilization rates demonstrate responsible credit management.
• Monitor Your Credit Report Regularly: Check your credit report at least once a year for errors or signs of fraud. You can obtain free reports from each of the major credit bureaus annually through AnnualCreditReport.com.
• Diversify Credit Mix: Having a mix of credit accounts (e.g., credit cards, installment loans) can positively impact your credit score.
• Be Patient: Building credit takes time. Consistency and responsible financial habits will gradually improve your credit profile.

Frequently Asked Questions (FAQ)

1. Why is reporting rent payments important for building credit?

Reporting rent payments establishes a payment history, crucial for calculating credit scores. Many renters, despite paying on time, receive no credit for it, hindering their ability to access loans and other financial products.

2. how does not reporting rent payments affect credit invisibility?

Failing to report rent payments contributes to ‘credit invisibility,’ where individuals lack sufficient credit history. This disproportionately affects minorities and immigrants, limiting their financial opportunities.

3. what is Esusu and how does it facilitate rent reporting?

Esusu is a service that partners with landlords and renters to report rent payments to credit bureaus. This helps renters build credit scores and gain access to financial services previously out of reach.

4. Can tenants report rent payments themselves, or does it require landlord participation?

Tenants can directly use rent reporting services like Esusu, particularly if their landlords do not already report. This democratization of credit reporting empowers more renters to improve their credit profiles.

5. What are alternative ways to build credit besides reporting rent payments?

besides reporting rent payments, individuals can become authorized users on credit cards, obtain secured credit cards, or utilize credit-builder loans. These methods help establish a positive payment history and improve credit scores.

6. How quickly can reporting rent payments impact a credit score?

The impact on a credit score from reporting rent payments can typically be seen within 30 days after the payment is reported. Consistent, on-time payments are crucial for a positive effect.

Have you considered
reporting rent payments
to boost your credit score? Share your experiences and questions in the comments below!

what are the potential downsides of using rent reporting services to boost my credit score, if any?

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The Untapped Potential of Rent Reporting

For years, consistent rent payments – a notable monthly expense for many – haven’t factored into credit scores. This meant millions of responsible renters weren’t receiving credit for demonstrating reliable financial behavior.Fortunately,that’s changing.Traditionally, credit bureaus focused on credit cards, loans, and mortgages. Now, several services are bridging the gap, allowing you to leverage your on-time rental history to build or improve your credit profile. This is notably beneficial for those with limited credit history,such as young adults or recent immigrants.

Why Rent payments Weren’t Previously Reported

The historical challenge lay in standardizing rent reporting. Unlike loan payments, rent payments weren’t consistently reported to the major credit reporting agencies. Ther wasn’t a centralized system. This has led to a significant blind spot in assessing a person’s true creditworthiness. Now,technology and innovative companies are addressing this issue.

Rent Reporting Services: Your Options

Several services now specialize in reporting your rent payments to Experian, TransUnion, and Equifax. Here’s a breakdown of popular choices:

Service	Reporting to	Cost	Key Features
Experian Boost	Experian	Free	connect bank accounts; reports utility & telecom payments too.
RentTrack	TransUnion, Equifax (optional)	$6.95/month (TransUnion), $8.95/month (Equifax)	Direct payment processing; landlord involvement required.
LevelCredit	TransUnion,Equifax,Experian	$9.99/month	Reports rent, utilities, and streaming services.
Esusu	TransUnion, Equifax	Varies (often landlord-sponsored)	Focuses on landlord partnerships; can help renters avoid eviction.

How Rent Reporting Impacts Your Credit Score

Reporting rent can positively affect your creditworthiness in several ways:

Build Credit History: For those with thin or no credit file, rent reporting establishes a positive payment history.

Improve Credit mix: Adding rent as a recurring payment diversifies your credit mix, wich can boost your score.

Increase Credit Limits: A stronger credit profile can lead to higher credit card limits and better loan terms.

Lower Interest Rates: Improved credit rating translates to lower interest rates on loans and mortgages.

Understanding the Impact on Different Credit Score Models

It’s crucial to note that the impact of rent reporting can vary depending on the credit scoring model used (e.g.,FICO,VantageScore). VantageScore 3.0 and 4.0 are generally more receptive to rent data than older FICO models. Though, even a modest improvement can be significant.

practical Tips for Rent Reporting

Choose the Right Service: Consider your budget, the credit bureaus the service reports to, and whether your landlord needs to be involved.

Ensure accurate Reporting: Double-check that your rent payments are reported accurately and on time.

Maintain Good Payment Habits: consistent, on-time rent payments are crucial for maximizing the benefits.

Check Your Credit Report: Regularly review your credit report from all three major credit reporting agencies to ensure accuracy.You can get a free copy annually at AnnualCreditReport.com.

Landlord Participation: Some services require your landlord’s participation.Discuss the benefits with them.

Real-World Example: Sarah’s Credit Journey

Sarah, a recent college graduate, had limited credit history. She used Experian Boost to report her rent and utility payments. Within weeks,her Experian credit score increased by 20 points,allowing her to qualify for a better interest rate on a car loan. This demonstrates the tangible benefits of leveraging previously unreported financial data.

Understanding Rent Payments and Credit

Beyond simply reporting, understanding how* rent payments are viewed is key. Credit bureaus are looking for consistent, on-time payments. late payments, even if only a few days, can negatively impact your credit score, just like with any other bill. Therefore,automating your rent payments is a smart strategy.

What is a Good credit Score?

A good credit score generally falls between 670 and 739. Excellent credit is considered 740 or higher. Improving your score, even by a few