Many Atlanta renters are missing out on an easy way to build credit

ATLANTA — Paying rent is the biggest monthly expense for thousands of families in metro Atlanta — but many don’t realize it could also be one of the easiest ways to build credit.

A recent survey revealed that the median credit score in Atlanta is 625, which is considered fair. It’s also a number that could be boosted by reporting on-time rent payments.

“Only about 4 or 5 percent of people who rent have their positive payment recorded,” said Larry Dorfman, co-founder of Atlanta’s Roots Investment Community. “Ninety-five percent aren’t even getting that credit.”

That’s a missed opportunity, especially considering how important a credit score is.

“Your credit is everything,” Dorfman said. “When you go to get utilities, buy furniture, or finance a car — they check your credit. What interest rate you pay depends on it.”

He added that credit is critical to wealth-building and homeownership, which could help some residents transition from renting properties to owning their own.

Dorfman expressed that many landlords in the City of Atlanta are likely not reporting on-time rent payments on behalf of residents. Unlike mortgage and credit card companies, landlords aren’t legally obligated to.

“Some property owners do report rent as part of what they do; some charge a resident a nominal amount of money, really to do it,” he further explained.

That’s why he encourages all residents to ask their landlords.

If landlords don’t report, renters can sign up with outside companies. Some services are free, while others charge a fee. Experts recommend making sure the company reports to all three major credit bureaus: Experian, Equifax, and TransUnion. Some services even offer retroactive reporting, usually going back two years, which can give renters an immediate credit boost.

“This is something, in many cases, you can do without the involvement of a landlord,” Dorfman explained.

And the impact can be significant.

Dorfman said the difference can be 40 to 70 points on your credit score. He added that people should be reporting their on-time utility payments, too, for an extra boost.

“It’s not hard to do, it’s not expensive to do,” Dorfman said, “and it’s going to lift your credit score.”

Experian Boost
A free service that reports to Experian only. It includes utility reporting but it is not retroactive.

Self (Premium)
Costs about $6.95 a month or pay a one-time $49.95 fee to report rent and utilities. It is retroactive. It only reports to TransUnion.

Boom Pay
Reports to all three credit bureaus for a fee. It is retroactive but will not report utilities.

Rental Kharma
Will charge a $75 setup fee and then $8.95 a month to report rent to TransUnion and Equifax. It is retroactive but does not include utilities.

RentReporters
Can retroactively report rent for up to four years to Equifax and TransUnion for a fee.

StellarFi
For about $10 a month, users can report rent and utilities to Experian and Equifax. It will not report retroactively.

Esusu Rent 
Reports to all three bureaus for a fee. It is retroactive but does not report utilities.