Will house rent checks increase credit line?
Hello Friends, I've been paying house rent of around 500 dollars per month by checks to the apartment for an year. will this increase the credit history? Thanks.
Public Comments
- Nope. In a rent situation, no one is lending you money so there is no credit extended. This is also why cell phones, electric bills, etc. do not build credit. To build credit, someone has to lend you money and you have to repay it as agreed. This would mean, Mortgages, auto loans, credit cards, personal loans, etc. However, if you do not pay your rent, the land lord could report it to the credit reporting agencies and that would hurt your credit!
- Rent and utilities are not extensions of credit and are not reported to the credit bureaus unless you default and the debt is turned to a collection agency who reports it. Your credit history/score is based on credit cards and other loans. Paying these promptly will build your credit.
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