When was the last time you purchased something online? If you are one of the 1.8 billion people who purchase items online, chances are it was recent. From groceries to golf clubs, online shopping opens up plenty of purchasing options for consumers. But have you thought of paying rent online?

Not only do you save time and energy when paying rent online, but you can also improve your credit score! By understanding what credit agencies look for when building credit scores and asking your landlord about online payment options, you can build a strong credit score faster and easier than ever. Here’s how:

What do Credit Card Companies Track?

First, it’s helpful to know what credit card companies use to build your credit score. For example, a national credit agency like Experian determines your credit score with three basic things:

  • Use of credit cards
  • Payment history
  • Applications for new loans and credit

When you pay rent on time and online, your payment history shows good faith, and that improves your credit score. One thing to remember, though, is that you need to pay off your credit card in full each month. That will reflect on your score, too.

How does paying rent online help my credit score?

When combined, these two parts improve your credit score. First, you need to pay rent online on time every month. The second part is to make sure your landlord reports your payment history to the credit bureaus. “You can’t report rental payments to credit bureaus yourself, but all three of the major bureaus will accept your rental payment data from a third-party servicer,” explained Forbes advisor Kelly Anne Smith. The good news is that landlords can report payments to third-party platforms.

So how do you make sure your rent payments are reported? At Pacific Palms Apartments, we offer an online rental payment system that reports information to the credit bureaus. That way, credit bureaus receive a record of your on-time rental payments, which contributes to your good credit. Give your credit score a boost by paying your rent online through the resident portal. As you do so, your payments are reported to credit bureaus, showing them exactly what they are looking for. In order to opt in for the credit reporting, follow these steps:

  1. Log in to your account through the resident portal and click on “Make a Payment Now.”
  2. Select “Build your credit history by opting in to credit reporting.”
  3. Enter your information in the credit reporting fields. Be sure to select “yes” for month-to-month lease if you have one, or select “no” and a lease end date.

Making online purchases is fast and convenient. So is paying rent online. By understanding what credit bureaus look for in buying behavior and following up on payment reporting, your online payments will be key to building a better credit score.