Does paying rent affect credit score?

[callvm]

I'm 23 and got my first credit card a month ago. I've used it a bit, made 1 payment so far, and my credit score is a whole 3 points (yay). I've heard before that paying rent can help boost your credit score, and I've been paying rent where I live for the past 6 months, but this doesn't seem to have affected my credit score at all. The same goes for my WebAfrica internet account, which I've been paying for as long as the rent - both of these monthly payments don't show up on my report and haven't affected my score

On www.clearscore.com, it says "having accounts in your name can help to build up your credit score". How true is this? Is there something I can do to get my rent / utilities to affect my score as well, because I don't use the credit card much.

 

[longboy]

Easiest way is to open up a clothing account and make payments monthly. After 3 months or so your score steadily climbs.

 

[phoneJunky]

Rent mostly goes to a private person, so I doubt you will get a credit score from that. Like Shaun said, I opened a Thruworths and Markam account and always choose the 6 months rent free option. That and a cellphone contract. That help my credit score with a lot.

 

[mister]

Your credit score is made up from companies who are registered credit providers, not landlords and ISPs.

 

[zerocool2009]

Landlords can register via tpn. Its a rental scoring system. Alot of guys/landlords use that.

I personally use it to “boost” my tenants credit score.

 

[NeonNinja]

Landlords can register via tpn. Its a rental scoring system. Alot of guys/landlords use that.

I personally use it to “boost” my tenants credit score.

To what end?

 

[zerocool2009]

To what end?

Any credit score is what you send money on, and if you can afford it.

Lets say someone pays R20 000 rent, its a huge plus for the tenant, as it shows data for 5 years (where he rented).

It works the same way with clothing accounts etc

 

[NeonNinja]

Any credit score is what you send money on, and if you can afford it.

Lets say someone pays R20 000 rent, its a huge plus for the tenant, as it shows data for 5 years (where he rented).

It works the same way with clothing accounts etc

You use it to boost their credit scores. As if they asked you. That don't make sense, why do you care for them? What if they don't pay or defer payments?

 

[zerocool2009]

You use it to boost their credit scores. As if they asked you. That don't make sense, why do you care for them? What if they don't pay or defer payments?

I do care for my tenants. Its a 2 way street

 

[deweyzeph]

Your credit score is made up from companies who are registered credit providers, not landlords and ISPs.

This. Generally only store accounts, credit card accounts, home loans, personal loans, insurance policies (for what reason I don't know), etc appear in the "Accounts" section of your credit report. Bear in mind though that anyone (private or company) who you owe money to can have a judgement taken out against you in court to recover unpaid debt and this will definitely appear on your credit report.

 

[NeonNinja]

I do care for my tenants. Its a 2 way street

Of course we're all human. I meant specifically for their credit record. What if they don't pay you or defer payments? What if they're going through hardships? Will you understand? Will you accept half the rent or no rent at all or they lose their jobs, do they keep the place because you are such a benevolent human being?

 

[zerocool2009]

Of course we're all human. I meant specifically for their credit record. What if they don't pay you or defer payments? What if they're going through hardships? Will you understand? Will you accept half the rent or no rent at all or they lose their jobs, do they keep the place because you are such a benevolent human being?

101 about renting, its all about communication.

I now had tenants who couldn't pay, who made an arrangement.

 

[hellfire]

I'm 23 and got my first credit card a month ago. I've used it a bit, made 1 payment so far, and my credit score is a whole 3 points (yay). I've heard before that paying rent can help boost your credit score, and I've been paying rent where I live for the past 6 months, but this doesn't seem to have affected my credit score at all. The same goes for my WebAfrica internet account, which I've been paying for as long as the rent - both of these monthly payments don't show up on my report and haven't affected my score

On www.clearscore.com, it says "having accounts in your name can help to build up your credit score". How true is this? Is there something I can do to get my rent / utilities to affect my score as well, because I don't use the credit card much.

Let's get to the fundamentals of how a credit score works...

• Credit scores are provided by the credit bureaux (Experian, Transunion, XDS, Compuscan[which is now owned by Experian] amongst others)
• The burueax get your score because there is legislation/regulation (primarly the National Credit Act) in place that credit providers must list report certain information about their customers to the credit bureaux
• Credit providers include banks, microlenders, retail credit providers (Truworths, Edcon etc) - basically any credit provided that is not a pawn agreement or incidental credit
• These credit providers are obliged to send data relating to your personal details and the particulars of the credit facility when you take out the credit
• The credit providers then give further information regarding to how you repay your credit (on time, late payer, irregular, non payer, etc).
• The bureau will take all this information and calculate a credit worthiness score based on statistical models
• The bureau provides that score to the next credit provider to whom you apply for credit, and the pricing of your credit is determined, in part, by that score

A rental agreement doesn't fall under the auspices of the NCA, and thus wouldn't build up your credit score

 

[YeaNutz]

what if you use your credit card all the time, Spend 8K or so on it, but always settle the amount at the end of the month, does a person get a score for this. I hate being in debt, I use my credit card but settle it on payday.

 

[mister]

what if you use your credit card all the time, Spend 8K or so on it, but always settle the amount at the end of the month, does a person get a score for this.

yes

 

[zerocool2009]

what if you use your credit card all the time, Spend 8K or so on it, but always settle the amount at the end of the month, does a person get a score for this. I hate being in debt, I use my credit card but settle it on payday.

Then your credit card record will be showing as paid in time