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Unfortunately, its easy to hurt your credit score.
Rent reporting offers an opportunity to build your credit score by making your rent payments on time.
Explore how rent reporting could help you grow your credit score, which you coulduse as a wealth-building tool.
But traditionally, rent payments arent included in your credit score calculations.
The good news is that rent reporting services are gaining ground.
For example,Esusurecently announced a direct-to-consumer rent reporting service called myEsusu.
Through this service, you could sign up to have your rent payments reported to the credit bureau.
If you make on-time payments consistently, this could lead to anincreased credit scoreover time.
On average, Esusu users have seen their credit score rise by 45 points, the service reported.
There are also free rent reporting services, likeRentSpreeandSelf.
But a higher credit score isnt necessarily the end goal.
Most want to leverage a high credit score as a wealth-building tool.
Below are some ways a higher credit score can help you build wealth over time.
Drivers with theright credit scoresave over $100 per month.
Of course, you could use the saved funds on lifestyle purchases.
Or you could decide to invest those savings for the long term, which could supercharge your wealth.
For example, say you have a stubborn $10,000 credit card balance with a 20% APR.
The ability to refinance your high-interest debt offers a path to paying down your debt ahead of schedule.
you’re able to redirect the funds you save by refinancing to your long-term investment goals.
Tap Into Homeownership
Homeownership is a goal for many households.
But interest rates can make or break your homebuying experience.
For a $250,000 loan, the monthly payment equals $1,499.
For many, this could make the difference between moving forward with a home purchase or not.
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