Over the past few years, increasing numbers of consumers have begun enrolling in rent reporting services. Specifically, they view them as an avenue for improving their credit scores. A recent national report shows how these services are becoming more popular across all age demographics, especially among millennials and Gen Z. When consumers are able to accurately report their rent payments to credit bureaus, they can increase their credit scores by an average of 23 points. In fact, most see average gains of 60 points!
Rent reporting services are a burgeoning space, in part because of the unique financial headwinds that most renters experience. This phenomenon is most acute with younger generations, namely Gen Z and millennials. TransUnion found in a recent survey of 2,006 respondents. It also showed that as of 2025, only 15% of Gen Z respondents had rent payments reported to credit bureaus. At 16%, Millennials are at the forefront of this trend. In comparison, Gen X and baby boomers trail at 12% and 8% respectively.
These rent reporting services are free or low-cost with different features. In fact a number of the providers make their offerings available at no cost. Some others simply require a monthly payment, ranging from $6.95 to $9.95. Consumers need to protect themselves by understanding the fees that may be hidden. Most of these services charge a one-time enrollment or setup fee, usually between $25 and $95.
When considering whether to utilize a rent reporting service, it is crucial for consumers to ensure that the service they select reports to all three major credit bureaus: Experian, Equifax, and TransUnion. This granular reporting has the ability to deliver powerful benefits to consumers trying to build or improve their credit profiles.
“If you are concerned about your job, for example, and unsure if you’re going to be able to make your rent payments six months from now, maybe it’s not the best time for you to sign up.” – Schulz
Rent payment reporting can raise your credit score significantly. Consider your personal financial state before enrolling in any of these programs. Schulz argues that timing and personal situations are key when it comes to reporting rent payments.
Cancellation policies differ substantially across providers. Consumers need to read the fine print before signing up to understand the conditions and limitations of each service. Knowing the details of any prospective application fees or minimum income requirements will allow renters to host a more productive search and comparison.
Wu raises a pertinent question regarding future implications: “Is a future landlord going to look at that and make assumptions?” This highlights the importance of understanding how the reported rent activity affects credit scores. It can affect the long-term housing opportunities available to them.
Renters are eager to find new opportunities that will improve their fiscal prospects. One affordable and promising option they’re looking to is rent reporting services. Making it easier for more consumers to have their consistent rental payment history reported can unlock these new opportunities. This is particularly helpful for younger renters who may not have long credit trails established.