More renters report rent to credit bureaus as U.S. credit scores fall at 2008 pace

More Americans are reporting monthly rent payments to credit bureaus as a tool to lift credit scores, a shift that comes as the average U.S. credit score declines for a second consecutive year at a rate not seen since the 2008 financial crisis.

A TransUnion survey released in 2025 found 13% of renters had their monthly payments reported to credit agencies, up from 11% in 2024. TransUnion, one of the three major credit reporting companies, said the increase reflects growing consumer interest in using rent history to build a stronger credit record.

"I'm happy to see that more consumers are empowered to participate," said Maitri Johnson, a senior vice president at TransUnion. "The vast majority of renters reliably make on-time payments and they deserve to leverage that proven responsibility toward home ownership."

The shift toward rent reporting coincides with a modest but notable drop in average credit scores. TransUnion said the average American credit score fell two points this year, from 717 to 715, marking the biggest two-year reversal since the Great Recession. The company uses a scale in which scores below 629 are considered "bad" and scores above 720 are classed as "excellent."

Analysts and consumer advocates point to several factors behind the decline. Households are carrying a record $5 trillion in non-housing debt, including $1.66 trillion in auto loans. Student loan payments, which total roughly $1.61 trillion on borrowers' books, resumed for millions earlier in the year after a pandemic-era pause. Higher interest rates and lingering inflation have pushed more consumers to rely on credit cards to meet everyday expenses, adding to balances and pressure on credit profiles.

Financial technology firms and consumer advisers say rent reporting is one of several underused tactics that can help borrowers improve scores, particularly for people with thin or damaged credit histories. Jenny Groberg, chief executive of accounting platform BookSmarts, said renters, homeowners and other consumers can boost scores by ensuring recurring payments are reported and by managing credit card behavior.

"Renters can report their monthly payments to credit bureaus and boost their score," Groberg said. She recommended that consumers request copies of their credit reports to check for errors, pay down credit-card balances promptly, increase available credit where feasible and make payments before the statement closing date to lower reported utilization. Groberg said combining such steps can lift scores substantially in some cases, with the potential to move scores by as much as 150 points for certain consumers.

Reporting rent to credit bureaus typically requires either a landlord or a third-party service to submit payment data. Some property managers and fintech firms now offer optional rent-reporting services that forward on-time history to one or more credit files, though availability varies by provider and by which credit-scoring model a lender uses.

Credit reporting and scoring are already evolving to incorporate broader payment histories. Lenders and bureaus have expanded models and products that can take recurring payments, such as utilities and insurance, into account. Proponents say these additions can help creditworthy consumers with limited installment-loan or mortgage history gain access to better terms; critics caution that changes require careful oversight to avoid errors and ensure fair access.

The recent score declines have prompted renewed emphasis among consumer advocates and some lenders on basic credit hygiene: verifying reports for mistakes, maintaining low revolving balances, and establishing reliable payment records. How quickly those measures can reverse the overall downward trend will depend in part on household balance sheets, interest rates, and whether broader economic conditions ease.

For now, a growing number of renters and service providers are treating monthly rent as not only a housing cost but also a potential credit-building tool — a development that could reshape how creditworthiness is measured for millions of Americans.