Personal Finance Tips for Renters

Jan 15, 2024

Whether you are a first-time or established renter, it's important for you to make financial decisions that will help you achieve your future goals — whatever they may be. Here, we’ve collected tips to help renters budget, save and grow their credit.

As a renter, maintaining a thoughtfully planned budget will allow you to understand your expenses, develop positive money management habits and lay the groundwork for you to achieve your long-term financial goals. To start, you may want to consider the factors that determine how much rent you can afford. But once you are comfortably settled in your rental, there are additional tips you can use to spend less and save more.

CreditSmart® Renter Resources has all the information you need to manage your money and rent confidently.

Your credit score matters when you apply for a lease. But it also plays a part in your ability to qualify for financing on mortgages, car loans or even higher education costs. If you don't know your credit score, start by checking it for free to get an idea of where you stand. Whether your score is high, low or you’re working to establish one, you can take actions that positively impact your credit. Paying your credit card bills on time and in full each month is a great habit to establish excellent credit.

A recent Freddie Mac initiative allows you to grow your credit score when you make on-time rent payments. Since 2021, although credit scores are affected by a number of factors, renters participating in this rent reporting initiative have been able to improve their credit scores. Check with your property manager to see if they automatically report rent payments to the three major credit bureaus. If they don't already, ask if they are willing to report your payments. If not, you can report them independently by signing up for a rent reporting service.

Freddie Mac is encouraging property managers to report on-time rent payments. Learn how you can build your credit with rent reporting.