I know that things like keeping your CC balances low, having no late payments, owning a home, making lots of high payments frequently all help your credit. But what about renting an apartment and paying your rent and all of your utility bills on time? If you regularly keep up with it, does it help any with your credit? My parents say yes, if they see you can manage to rent a place and keep up with the payments then it helps. Some of my friends say otherwise, because there's no equity in renting and if you don't pay, they only throw you out. Also, my lease on the car shows up on my report, and isn't that "renting"? Which is correct - does renting an apt and paying related utility bills do anything for your credit?

 

1. No, you can't get a credit rating from renting an apartment or paying your utility bill on time. You may have no deposit the next time you move if you get a good referral, but that's it.
2. Your parents are confused, sorry.
3. Your friends are correct.
4. Leasing still involves a loan, no matter how you think of it, and it's this loan that gives you the credit. However, people get a little confused about the high-credit associated with a lease, so I'll explain that.

Lets say you lease a $30K car, and have a 75% residual, so only have to pay 25% of the vehicle in the 3 or 4 years you have it. Your high credit will be $7,500, not $30K.

 

 

They are correct, however if you fail to pay rent or utility companies, you can end up with a negative to your credit score. (they will report non=payment) to credit agencies.

 

correct. rent/utilites will show up on your credit as inquiries, because they do delve into your credit history, but they will only report on your bureau if you don't pay.

 

haha!! i know this one way too well from personal experience during my college days...