For decades, renters have been stuck in a one-sided relationship with credit bureaus. If you pay your $1,500 rent on time for 5 years, your credit score gets zero points. But if you miss one payment and get evicted, your score gets destroyed.
That is a bad deal. You are paying a mortgage-sized payment without getting the mortgage-sized credit benefit.
The solution is Third-Party Rent Reporting. These services act as a verification middleman. They confirm with your landlord (or check your bank account) that you paid rent, and then they report that payment to TransUnion, Equifax, and Experian as a "Tradeline."
The Math: Why Pay for This?
Why would you pay a fee to report a bill you are already paying? Because of the "Thin File" Boost.
If you have very few accounts on your report (a "thin file"), your score is volatile. Adding a Rent Reporting service doesn't just add this month's payment; most allow you to add up to 24 months of past history.
The Impact
Adding a 2-year-old tradeline with 100% on-time payments increases your "Average Age of Accounts" and "Payment History" simultaneously. For thin files, we have seen jumps of 20 to 40 points in under 30 days.
The Comparison: Pricing vs. Bureaus
| Service | Ongoing Cost | Lookback (Past History) | Bureaus Reported To |
|---|---|---|---|
| New Boom | ~$2/mo ($24/yr) | $25 One-Time | All 3 (EX, TU, EQ) |
| Rental Kharma | $8.95/mo | $50 Setup Fee | TransUnion Only |
| Rent Reporters | $9.95/mo | $94.95 Setup Fee | TransUnion + Equifax |
*Pricing subject to change. Always verify on the provider's site.
The Verdict
Not all services are created equal. Your choice depends on your specific goal.
Best Value (Ongoing)
BoomBoom is the disruptor. They charge a flat yearly fee (~$24) which is significantly cheaper than the $100+/year charged by competitors. Plus, they report to all 3 bureaus.
Best Customer Service
Rental KharmaIf your landlord is difficult or you have a complex situation (roommates, sublet), Rental Kharma has actual human support agents who will call your landlord to verify history. They are the "High Touch" option.
A Warning Note
Rent reporting works both ways. Once you sign up, you must pay on time. If you are struggling to make rent or paying late frequently, do not sign up for these services. They will report the late payments, and you will pay a monthly fee to lower your own credit score.