An increasing number of Americans see their rent payments reported to credit agencies, 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 nonprofit organizations (2), say reporting rent payments to credit agencies is a way for people who may not have strong credit histories to build credit, which can lead to them being able to get a mortgage in the future.
However, not all tenants self-report. According to a CNBC report, some are seeing their property managers report on their behalf. (3)
In a CNBC report, Chi Chi Wu, senior attorney at the National Consumer Law Center, said that for some, late payments showing up on a prospective tenant’s credit report are “like the kiss of death for landlords.”
For struggling renters, this could seriously impact their ability to find housing. “What you risk is hindering struggling tenants or even causing them to become homeless.” (4)
So what can you do to ensure that rental reports are actually a benefit to your credit score and your long-term ability to find a good rental home? Read on for our tips on how to become part of the program and what you need to know if you want to avoid filing rent.
TransUnion says the rent payment reporting trend 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 scores, 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 tenants whose payments are reported has increased, suggesting that tenants report themselves through third-party agencies.
If you always make your rent payments on time, reporting it to the credit bureaus can help improve your credit score. A 2021 TransUnion analysis found that including rent payments on credit reports increased people’s credit scores by an average of 60 points.
Some programs to have rent payments reported to credit bureaus require you to sign up, while other programs are automatic and you can’t opt out, Wu told CNBC.
However, critics warn that having a late rent payment on your credit history could hurt some tenants.
If you want to know if your rent payments are reported, you can review your lease or rental agreement, talk to your landlord or property manager, or you can check your credit report. (6)
By law, you are entitled 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 it may affect your score.
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According to the CNBC report, renters should be careful if their rent reporting system is a “full file” report, meaning both on-time payments and late payments will be reported.
There are rental payment reporting programs that are “positive only” and only report on-time payments. However, Wu, of the National Consumer Law Center, told CNBC that programs like this can still hurt vulnerable tenants, because potential landlords might still wonder why there were gaps in reporting between on-time payments.
For those who can always make their rent payments on time and who hope to one day become homeowners, reporting their rent payments can help build their credit and could mean they will be able to get a mortgage in the future and get better interest rates.
But for renters who aren’t financially stable, or people who wouldn’t 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 finding housing.
According to Experian, even if a late payment isn’t reported on your credit report, you should keep in mind that if your landlord can’t collect rent, they could also send it to collections.
Experian says this can hurt your credit score even more than reporting a late rent payment, as it indicates the debt has been overdue for longer. And remember that a late payment or overdue rent that went into collections can stay on your credit report for up to seven years.
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TransUnion (1); Urban Institute (2); CNBC (3); real estate agent.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.
