How to Use Your Rental History to Build Credit

Owning a property gives you the opportunity to improve or build on your existing credit history because your lender will report on-time payments to the credit bureaus. But if you rent a house or apartment and have never had a credit card or loan in your name, your credit history may appear blank and this can hinder a mortgage approval.

Anyone with goals of buying a property needs to establish credit and maintain a good score. But since you need credit to build credit, getting your first credit account can prove challenging. Rather than complain about your lack of credit opportunities, get creative and use your good rental history to build your credit.

Step 1

Talk to your landlord to see if he will report your rental history. Landlords are not obligated by the credit bureaus to report the rental history of tenants. Express your plans to improve your overall credit history and then ask your landlord to begin reporting your good rental history. This involves extra work on your landlord's part, and he may only comply with your request if you're a good tenant.

Step 2

Provide your landlord with the necessary information. Your landlord may agree to report your rental history, but not know how to proceed. Do your homework and guide your landlord through the process. Because your landlord isn't accustomed to reporting rental history, he may dilly-dally with updating your report. Inform your landlord that he will need to apply for membership with Experian and pay the required fee. Once accepted, your landlord can begin reporting information using your name, address and Social Security number.

Step 3

Pay your rent payments on or before the due date to keep your credit score in good standing. Now that you've given your landlord the green light to update your credit report, he'll not only provide positive information related to timely payments, but also report negative information if you begin to make late payments.