What Are The Benefits?
It can be easy to see the benefits of automatic rent payments for landlords, but what about tenants?
There are many benefits for tenants signing up for SingleKey’s rent collection. Not only to help eliminate accidental missed payments but also to improve your credit score. A good credit score is desirable but can be challenging to build. This is why SingleKey aims to help tenants improve their credit by paying their rent on time.
Build Your Credit
Each payment is recorded to the credit bureaus, so by paying your rent on time, you contribute to building your credit score.
For young adults, it’s common not to have any credit history on file, and they are typically unaware of how to start building good credit. Reporting rent payments can help young adults begin creating their credit history, which can help when you apply for credit cards or loans.
For those new to Canada, it can take up to six months to start building a credit score. While it can be challenging to start building a credit history in a new country, SingleKey’s rent collection helps provide a simple way for tenants to start building their credit.
Improve Your Credit Score
Tenants should be rewarded for making their rent payments on time. When making rent payments by e-transfer, those transactions are not reported to the credit bureaus. Meaning one of your most significant monthly expenses does not count towards building your credit score.
Credit building can be complex. Mistakes from a few years ago may still negatively impact your credit. Having poor credit can reduce your chances of renting the places you want the most, even if you have always paid rent on time. SingleKey’s rent collection helps tenants gain recognition for rent payments by reporting it to the credit bureaus to help improve their credit.
By building a good rent payment track record using SingleKey’s rent collection, you can keep a log of on-time payments to share with future landlords. Not only is it good to keep on file, but this will be beneficial for the next time you’re looking to rent. Providing proof of on-time payments can look admirable for future potential landlords and could help your chances versus other applicants. Even if you don’t have perfect credit, rent reporting helps create a positive tenant record while also improving your credit score.
Eliminate Unnecessary Stress
Life gets busy fast, and it can be easy to forget to send a rent payment by e-transfer or deliver a cheque. SingleKey’s online rent collection allows both tenants and landlords to set it and forget it. Secure and automatic scheduled payments will eliminate the stress of late payments while also saving time.
One of the worst renting experiences for tenants is writing post-dated cheques incorrectly, which SingleKey looks to eliminate by implementing scheduled rent payments through pre-authorized debit, which can be set up in only a few minutes online. This means both landlords and tenants don’t need to stress about possible bounced cheques or accidental missed payments. Online rent collection saves tenants stress and time which helps build trust with landlords.
Final Thoughts
SingleKey’s rent collection can help tenants build good credit for their future. It can be complicated to improve credit scores. Having good credit is important for applying for loans, credit cards and new rentals. Tenants can now be recognized for their on-time rental payments to build their credit online with scheduled and secure rent collection. SingleKey’s rent collection aims to help make renting easier for both landlords and tenants.
