An increasing number of Americans have their rent payments reported to credit bureaus, sparking debate on its benefits. 13% of renters saw their payments reported in 2025, up from 11% in 2024. Advocates say it helps build credit, but late payments can hurt tenants’ chances of securing housing.

Some renters have their property managers report rent payments on their behalf, raising concerns about late payments impacting credit scores. Rent payment reporting can increase credit scores by an average of 60 points, but some programs are “full-file” reporters, including missed payments, while others focus only on on-time payments.

Critics warn that late rent payments can still hurt renters, even if not reported on credit reports. Renters should check their lease or rental agreement to see if payments are reported, as collections from missed rent payments can damage credit scores more. Late payments or past due rent can stay on credit reports for up to seven years.

Rent payment reporting programs can vary, with some requiring opt-in while others are automatic. Positive-only reporting programs only report on-time payments, but even these can pose challenges for vulnerable renters. Rent payment reporting can help build credit for stable renters, but it may hinder those facing financial instability.

Read more at Yahoo Finance: Reporting rent can boost your credit, but 1 tiny mistake could cost you all the benefits