Americans are using a nifty thousand-dollar-a-month move to boost credit scores – as ratings drop at 2008 pace
More consumers are using their biggest monthly expense to improve their credit score.
For years, thousands-of-dollars-a-month rent checks did nothing to build a financial track record.
Credit unions scored Americans from 300 to 850 — with anything below 629 considered ‘bad’ and anything above 720 deemed ‘excellent’ — to evaluate access to mortgages, car loans, and credit cards.
Bureaus only considered data points like income, the size of debt, and interest rates to calculate a consumer’s worthiness. But now, more Americans are raising their scores by reporting their rent payments.
A new survey from TransUnion, one of the three major credit reporting agencies, shows that 13 percent of renters reported their monthly payments in 2025. That’s up from 11 percent in 2024.
‘I’m happy to see that more consumers are empowered to participate,’ Maitri Johnson, a senior vice president at the company, said.
‘The vast majority of renters reliably make on-time payments and they deserve to leverage that proven responsibility toward home ownership.’
However it comes as America’s credit scores are experiencing a worrying downward trend, not seen in over a decade.
According to the credit scoring company, anything below 629 is considered ‘bad’, while anything above 720 is ‘excellent’
Last year, credit scores started to decline for the first time in over a decade.
This year, the average American credit score has fallen for the second consecutive year, down two points to from 717 to 715. This marks the biggest drop since the Great Recession of 2008.
For more than a decade, scores had only risen or held steady, climbing from 690 in 2013 to 718 in 2023.
The reversal reflects the financial squeeze on households.
Americans are now juggling a record $5 trillion in non-housing debt, with drivers alone owing $1.66 trillion on auto loans.
Student loan payments — which make up another $1.61 trillion — resumed for millions earlier this year.
Add in inflation and higher interest rates, and many families have turned to credit cards to cover basic expenses.
Despite all of the financial pressure, Jenny Groberg, CEO of accounting platform BookSmarts, said Americans can make a series of small adjustments to turn their credit scores around.
Renters can report their monthly payments to credit bureaus and boost their score
Americans have turned to credit cards at a record clip while fighting inflation
Jenny Groberg, CEO of accounting platform BookSmarts, said homeowners can mimic the renter’s tactics with car payments or their Netflix account
She said shoppers should request copies of their report and check for errors.
They should also immediately pay off their credit cards, and raise their credit limit.
If those avenues are available, she said credit holders can see their scores increase by as much as 150 points.
‘You’re really going to increase your score by making payments before the closing date on your statements,’ she said.
Groberg also said that Americans can mimic the tactic used by renters by reporting their utilities, car insurance payments, and streaming subscriptions to credit bureaus for a quick boost.
