Short answer: Paying rent can help your credit record in South Africa, but only if your landlord or rental agency reports your payments to a credit bureau. Many rental agencies report to specialist bureaus such as TPN or PayProp, while many private landlords report nothing. If your rent isn't reported, paying on time won't change your score, however reliable you are.

Key takeaways

  • Rent only affects your credit record if it is reported to a bureau.
  • Rental agencies often report to TPN or PayProp; many private landlords don't report at all.
  • Late or missed rent that is reported can hurt your record, just as on-time rent can help.
  • You can check your credit report for free once a year with each major bureau.

How does rent get onto your credit record?

Your credit record is built from information that companies send to credit bureaus. Banks, retailers and cellphone networks report your repayments automatically. Rent is different: there's no automatic system. It only appears if your landlord or agency chooses to report it.

Professional rental agencies usually have systems that report payments to a specialist property credit bureau such as TPN or PayProp. Some private landlords sign up to rental reporting programmes, but many don't.

Does on-time rent improve your credit score?

If it's reported, yes, it can. Payment history is the biggest factor in most credit scores, and a long record of on-time rent shows you manage a large monthly commitment well. This can help most if you have a "thin" credit file, for example if you're young or have never had a loan or credit card.

TPN and Experian announced a partnership to bring rental payment data into mainstream Experian credit files, aimed at making credit easier to get for people who rent.

Can late rent hurt your credit score?

Yes. If your landlord reports to a bureau, late or missed payments can be recorded too. A judgment or default listing for unpaid rent can make it much harder to rent your next home or get credit.

How do you find out if your rent is being reported?

  1. Ask your landlord or agent whether they report payments, and to which bureau.
  2. Check your credit report. You're entitled to one free report a year from each major bureau.
  3. Look for a rental section on your report, or a TPN rental profile.

What else can you do to build credit as a renter?

  • Pay every account on time, not just rent.
  • Keep credit card and store account balances low.
  • Avoid applying for lots of credit in a short time.
  • Keep proof of your rent payments to use as a reference when you apply for a new rental.

Where does Luupa fit in?

Luupa rewards you with points every time you pay rent on time, and more when you pay early. Even when rent doesn't reach your credit score, your reliability still earns you something every month.

The bottom line

Rent can build your credit, but only if it's reported. Ask the question, check your report, and make sure your biggest bill is working for you.

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