Rent payments have become a consideration on a growing number of American credit reports.
The share of consumers whose rent payments were reported to credit bureaus rose to 13% in 2025, up from 11% in 2024, according to a recent report from TransUnion, one of three major bureaus.
For many in the credit industry, the uptick is a net positive. Advocates for rent reporting, from nonprofits to members of Congress, have touted it as a way for those with thin or non-existent credit files to start building or boosting their creditworthiness.
“It’s a good thing that more people’s rent payments are getting reported to credit bureaus because it can really help people improve their credit,” Matt Schulz, chief credit analyst at LendingTree, recently told CNBC.
But he and other experts say that certain consumers should tread carefully. That’s because, for certain renters, the risk of reporting a missed or late payment can render these programs’ benefits moot.
“Those late payments show up on [your credit report], and it’s like the kiss of death for landlords,” says Chi Chi Wu, a senior attorney at the National Consumer Law Center.
It’s common practice for landlords to examine your credit history when considering whether or not to rent to you, Wu says. And while some may be willing to look past a late credit card payment, “they’re not looking past a late rent payment,” she says. “What you risk is hampering struggling tenants or even causing them to be homeless.”
Approach rent reporting with caution
For consumers who consistently make on-time payments, rent reporting programs are doing their job. Including rent in credit reporting increases enrollees’ scores by an average of 60 points, according to a 2021 report from TransUnion.
But for the most vulnerable renters — those who these programs are ostensibly aimed to help — the risks can outweigh the benefits, says Wu.
“A landlord seeing a 30-day late [payment], at a minimum, is going to require a high security deposit, might turn them down, and that tenant might not be able to find a decent apartment … or might not be able to get an apartment at all,” she says.
If you’ve had spotty history making rent, or even if you fear that an emergency, such as a job loss, could affect your ability to make on-time payments, these programs likely aren’t for you, experts say.
Your rent may already be on your report
Avoiding having your rent reported may not be as simple as choosing not to sign up for one of these programs. Your landlord or property manager may be reporting your rent payments on your behalf, Wu says.
“Some of these programs are opt-out. Some of them are automatic, and they don’t let you opt out,” Wu says. “The worst ones are when a landlord — usually a big corporate landlord — is doing rent reporting so that they have a stick over tenants.”
NCLC has investigated cases in which landlords used rent reporting as a “cudgel” against tenants legally withholding rent due to substandard living conditions.
If you’re concerned that your rent payment information is being reported without your knowledge, check your credit reports, says Wu. You can request free reports from each of the three major bureaus at AnnualCreditReport.com.
It’s also worth reviewing your lease or rental agreement and checking with your landlord or property manager regarding the policy around reporting missed payments, according to Experian.
Be especially wary if a rent-reporting program is a so-called “full-file” reporter, meaning that both on-time and missed payments go on your report, says Wu. Some services provide what’s known as “positive only” reporting, which only includes payments that will help your score.
While those are less risky, Wu says, they can still potentially ding your standing with future landlords if they see a gap in your on-time payments. Whether or not you share that information should be an informed decision, Wu says.
“Consumers should have a choice whether their information is supplied or not,” she says. “One of the biggest overall problems in the credit reporting system is, we have no choice.”
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