Credit scores are used far & wide across the financial industry. From leasing a car to leasing a rental, credit scores play a huge role in determining loans, interest rates, and yes — whether or not a landlord will rent to you.
However, making on-time payments can improve renter credit score—especially with using RentRedi.
Why does credit affect my rentability?
Landlords use credit scores to determine the reliability of tenants. If a renter has a strong credit score, chances are they will make consistent and on-time rent payments for the duration of their lease.
How to improve renter credit score with RentRedi?
In general, it’s difficult to find an easy system for individual tenants and landlords to report rent payments to credit bureaus. However, if you are a RentRedi landlord or tenant, you can sign up for a credit boost right in the RentRedi tenant app.
There are three plan options available to renters:
- Entire Lease
- 3-Month Lease
- Every Month
When you select your plan and click the “Add Credit Boost” button, you’ll also have the option to report past rent payments you’ve made via the RentRedi app at an additional cost. The more rent payments you report now or in the future, the more the credit bureaus will factor into your score.
Does a late rent payment affect my credit score?
Yes, which is why it’s important to pay your rent on time.
According to FICO, credit actions like missing or late payments can significantly impact your score—especially if you fall 30-90 days behind on a payment. If you have a higher credit score, missing or submitting a late payment has more of a negative impact on your credit score because you’ve not previously been marked as having “risky” behavior.
Fortunately, with RentRedi’s auto-pay and rent reminder features, you can ensure your rent is paid on time, every time!