Updated November 2014.
As someone who recently busted my butt and got completely out of debt, I’m a bit of rebel when it comes to the “normal” methods of building credit. Mostly because many of them are all about using credit cards or some form of debt, to increase your score and build a solid history.
You’ll often hear advice like “open a credit card and pay the balance off at the end of the month” or “take out a personal loan and pay it back within 12 months”.
I don’t agree with this because you’re using debt products to build credit. It’s essentially like the financial system is rewarding you for being in debt. Crazy right?!
Besides the fact that it saves time and money (since you don’t have to buy checks to pay the landord) it’s also totally free. And now, they offer the ability for renters to build credit while paying their rent – no credit card or debt required. Pretty cool! Here’s how it works:
Build Good Credit by Paying Rent
Every time you pay your rent on time using WilliamPaid, you build credit. They verify your payments and report them to a credit bureau to help build your FICO score.
In conjunction with Experian RentBureau, each online rent payment made through WilliamPaid will be reported on your credit report. Renters can pay using their banking account, by credit card, cash, or any combination.
You can then schedule a rent payment through your bank account for free, or with a credit card with a 2.9% transaction fee. If you pay with cash there’s a $10 fee as well. But it could be worth it for building a solid credit history without debt.
When you log in to your account, you have the option to enroll in the build credit plan, by clicking “build credit history”.
When you enroll in the credit program you get to build your credit history for FREE! Yep, this feature is included when you pay your rent every month using WilliamPaid.
It’s definitely worth the service because you can build credit without having to use credit cards (or secured cards) which could put you thousands of dollars in debt.
Track and Monitor Your Credit Score
When you opt-in to report your rent payment history to Experian RentBureau you can keep track of your credit score as it progresses.
WilliamPaid reports your monthly rent payment and updates your credit score onto your dashboard. Here’s how it will look using a month-to-month comparison.
And it gets even more awesome. You don’t need to be on the lease to build your credit history!
WilliamPaid offers a feature where you can split the rent with your roommate and pay them using WP. So whether you’re on the lease or not, they report your share of the rent to the credit bureau.
Be Sure You’re Secure
If you’re concerned about WilliamPaid not keeping your information secure or not forwarding your payment on time, there’s no need to worry. Like I said, I’ve been using this service for quite a few months now and I’ve never had any problems.
As an FCRA-certified data furnisher, when you make payments through WilliamPaid, it’s completely secure and paid on-time, directly to the landlord.
Plus their customer service has been outstanding and I enjoy interacting with them on Twitter and Facebook. If you’re not satisfied with the service, there’s no commitments. You can cancel at any time.
Sign up now!
I promise, paying your rent with WilliamPaid is much smarter than going into debt to build credit!