Background and why nontraditional data matters

Lenders have long relied on tradeline data (credit cards, auto loans, mortgages) to score consumers. But many households — renters, recent immigrants, young adults, and people who avoid credit products — have thin or no tradelines. Nontraditional data fills that gap by adding recurring payment information (rent, electricity, gas, water, mobile, internet) to a credit file so a lender can see a longer track record of monthly obligations and on-time payments.

In my 15 years helping clients, I’ve seen rent and utility reporting move otherwise invisible applicants from declined to approved. That doesn’t mean every renter will see a large score jump; instead, accurately reported on-time payments often reduce the information gap lenders face, especially for scoring models tuned to include alternative data (see CFPB guidance on alternative data for credit access).

Sources and quick references:

How nontraditional data gets into credit reports

There are three common paths:

  1. Direct reporting by service providers. Some large telecom or utility companies report payment records to one or more nationwide consumer reporting agencies (CRAs).
  2. Consumer-authorized aggregation (Experian Boost-style). Consumers connect bank accounts or provide billing history to a service that maps on-time payments into a CRA’s scoring inputs. This method usually requires explicit opt-in.
  3. Third-party rent or bill-reporting services. Firms such as RentTrack, RentReporters, and others collect rent or utility payment histories from landlords or tenants and report those records to one or more CRAs.

Each path requires consent and accurate documentation. Not all CRAs receive the same data, and not all scoring models use it, so outcomes will vary.

Who benefits most

  • New credit users (young adults, college grads) who lack tradelines
  • Renters with consistent on-time months who haven’t built credit history
  • Immigrants and recent arrivals who have payment history overseas but little U.S. tradeline data
  • Rebuilders who show steady payment behavior after a derogatory event

People with already-rich credit files typically see smaller changes. Nontraditional data can be most meaningful for thin-file consumers because any added verified payment history gives models more to evaluate.

Practical steps to get rent, utilities, and telecom counted

  1. Check whether your provider already reports. Contact your landlord, property manager, utility, or phone company and ask if they report to Equifax, Experian, or TransUnion, and whether reporting includes on-time payments.
  2. Consider rent reporting services. If your landlord doesn’t report, ask whether they’ll sign up with a rent-reporting vendor or whether you can enroll yourself through a tenant-paid service. Search for reputable options and check fees and dispute processes.
  3. Use consumer opt-in programs carefully. Products such as Experian Boost require you to link accounts and grant permission to read payment history. Read privacy policies — linking bank accounts shares sensitive transaction data.
  4. Document and verify. Keep receipts, bank statements showing bill payments, and signed lease documents. After enrolling with a reporting service or provider, check your credit reports to confirm the information appears.
  5. Monitor and dispute errors promptly. If a reported payment is wrong or marked late in error, use the CRA dispute channels and keep copies of evidence (canceled checks, bank statements, receipts).

For guidance on disputing errors, see our walkthrough: How to Dispute Errors on Your Credit Report.

What lenders actually use this data?

Adoption is increasing but uneven. Some scoring models and lenders accept alternative data as part of a manual underwriting or automated decision. Mortgage underwriters, some credit card issuers, and fintech lenders are more likely than others to consider nontraditional data. The Consumer Financial Protection Bureau and several CRA white papers note that alternative data can improve access to credit — especially for consumers with limited tradelines — but it is not a universal fix.

Benefits and risks — a balanced view

Benefits:

  • May improve access to credit for thin-file consumers
  • Demonstrates consistent household-level financial responsibility
  • Can speed approvals or improve terms when combined with other positive data

Risks and downsides:

  • Inaccurate reporting can harm credit files; once added, negative entries (late payments, collections) also follow.
  • Lack of standardization: not all utilities or landlords report, and the three nationwide CRAs may receive different information.
  • Privacy and consent: some services require linking bank accounts, which increases data-sharing risk.

Common mistakes and how to avoid them

  • Assuming all positive payments automatically boost your score. Only verified, reported payments that scoring models use will affect a numerical score.
  • Not checking which bureau received the data. A reported rent payment that only goes to one CRA won’t help scores that rely on another bureau’s file.
  • Failing to document disputes. Keep written proof (bank statements, receipts, lease terms) and follow CRA dispute procedures if errors appear.

Example situations (realistic, anonymized)

  • Lisa, a renter with no credit cards, enrolled her landlord in a rent reporting service. Within 6–12 months, her file contained a steady string of on-time rent entries; a card issuer using that bureau’s trended data moved her from limited-credit status to an approved starter card.
  • Marcus linked his checking account to a consumer opt-in aggregator that verified his mobile and streaming payments. He saw a modest lift in one bureau’s score because his prior thin-file now included several additional on-time monthly payments.

FAQs

Q: Will reporting my rent always increase my credit score?
A: No. If you have negative tradelines or other delinquencies, added rent reporting may not offset existing damage. However, for thin files, consistent on-time entries are more likely to produce measurable improvements.

Q: Can rent or utility reporting hurt me?
A: Yes — if your payment is incorrectly reported as late or sent to collections, it can lower your score. Always confirm accuracy after a new reporting relationship is established.

Q: How long until I see an effect?
A: Timing varies. Some services upload historical payments, which can produce faster changes. Other programs add data going forward; improvement typically appears after several months of consistent reporting.

Action checklist (quick)

Related reading on FinHelp

Author note and disclaimer

In my practice as a consumer credit counselor, I’ve helped clients enroll landlords and choose reporting services; results vary by bureau and lender. This article is educational only and not individualized legal, tax, or financial advice. For personal guidance, consult a qualified credit counselor or financial advisor.

Sources and further reading

(Last reviewed: 2025)