Rent-A-Center Does Not Report to Credit Bureaus
Rent-A-Center does not report your payment history to the three major credit bureaus — Equifax, Experian, and TransUnion. This means making on-time payments to Rent-A-Center will not raise your credit score, and missing payments will not lower it. Your rental account with them exists separately from your credit file.
This is the core difference between Rent-A-Center and the secured credit card strategy you may have read about. A secured card reports every payment to the bureaus, building your credit history month by month. Rent-A-Center's business model is rental, not credit-building, so the company has no reason to share your payment data with the bureaus.
If you are looking for a way to build credit while obtaining furniture, appliances, or electronics, Rent-A-Center alone will not do that work. You would need a separate tool — a secured card, a credit-builder loan, or becoming an authorized user on someone else's account — to create the payment history that credit bureaus track.
Key Takeaways
- Rent-A-Center does not report to Equifax, Experian, or TransUnion, so on-time payments do not build your credit score.
- Missing Rent-A-Center payments also do not damage your credit score directly, though the company may send your account to a collection agency if you fall far behind.
- A secured credit card reports to all three bureaus and is a more direct path to building credit than renting.
- Rent-A-Center charges rent-to-own prices that are significantly higher than buying the same item outright, so using it primarily for credit-building is an expensive strategy.
What Happens If You Stop Paying Rent-A-Center
Although Rent-A-Center does not report to credit bureaus on its own, the company can still damage your credit indirectly. If you fall behind on payments and Rent-A-Center sends your account to a collection agency, that collection account will appear on your credit report and harm your score.
Collection accounts remain on your credit report for seven years from the date of first delinquency, even if you later pay the debt. This is why missing Rent-A-Center payments can eventually affect your credit — not through Rent-A-Center itself, but through the third-party collector the company hires.
You also need to know that Rent-A-Center can repossess items if you stop paying. Unlike a credit card, where nonpayment results in a charge-off and collection calls, Rent-A-Center will straightforward retrieve the furniture or appliance you are renting. This happens without court involvement in most states.
The Cost of Rent-A-Center Compared to Buying
Rent-A-Center's prices are structured so that the total amount you pay over the rental period far exceeds the item's retail price. A television that costs $400 to buy might cost $15 to $25 per week to rent, which adds up to $780 to $1,300 over a year — nearly double or triple the purchase price.
If your goal is to build credit, paying these inflated rental prices for an item that does not report to credit bureaus is an inefficient use of money. A secured credit card requires a cash deposit (typically $200 to $2,500) that you keep in a savings account, and you pay only the interest and fees on purchases you make — usually $0 to $95 per year in annual fees.
Over the same year, a secured card costs far less and produces a credit history that credit bureaus actually track. Rent-A-Center makes sense if you need furniture or appliances right now and cannot afford to buy them outright. It does not make sense as a credit-building tool.
Better Alternatives for Building Credit
A secured credit card is designed specifically to build credit. You deposit money as collateral, receive a credit line equal to that deposit, and use the card to make small purchases each month. The card issuer reports your payment history to all three bureaus, and after 6 to 18 months of on-time payments, you may be moved to a regular unsecured card and your deposit returned.
A credit-builder loan works differently but achieves the same goal. You borrow a small amount (usually $300 to $1,000) from a credit union or online lender, but the money is held in a savings account you cannot touch until the loan is paid off. You make monthly payments, and the lender reports each payment to the bureaus. Once the loan is repaid, you have both a credit history and the borrowed amount in your savings account.
Becoming an authorized user on someone else's credit card account is faster but requires trust. If the primary cardholder has a long history of on-time payments and low balances, their account history may be added to your credit report. This can raise your score within weeks, though it depends on the card issuer and the age of the account.
When Rent-A-Center Might Make Sense
Rent-A-Center is useful when you need furniture or appliances when ready and have no other way to obtain them. If your apartment is empty and you need a bed, couch, or refrigerator before you can move in, renting is faster than saving to buy. The high cost is the trade-off for when ready access.
Rent-A-Center also offers a rent-to-own option on some items, meaning your rental payments eventually lead to ownership. If you rent an item for long enough, the total paid equals the purchase price and the item becomes yours. This is still expensive compared to buying outright, but it does result in ownership rather than perpetual rental.
However, if your primary reason for considering Rent-A-Center is to build credit, that is not what the service does. The company's lack of credit bureau reporting makes it a poor choice for that goal, no matter how much you need the furniture.
How Credit Bureaus Know About Your Rent Payments
Credit bureaus receive data from lenders and creditors who have a financial stake in reporting your behavior. Credit card companies, banks, auto lenders, and mortgage companies all report because they need to track whether you repay borrowed money. Rent-A-Center is a rental company, not a lender, so it has no reason to report.
Some landlords do report rent payments to credit bureaus through specialized services, but this is rare and usually only happens if you use a rent-reporting service that charges a fee. Rent-A-Center does not participate in any such service.
The bureaus' business model depends on data from creditors. If Rent-A-Center wanted to report your payments, it would have to pay to do so, and the company has decided that investment is not worth it. This is why your Rent-A-Center account will never appear on your credit report unless it goes to collections.
Frequently Asked Questions
Can I use Rent-A-Center to build credit if I make all my payments on time?
No. Rent-A-Center does not report to credit bureaus regardless of whether you pay on time or miss payments. On-time payments will not raise your score. If you want to build credit, you need a tool that reports to the bureaus, such as a secured card or credit-builder loan.
Will a missed Rent-A-Center payment hurt my credit score?
Not when ready. Rent-A-Center does not report to credit bureaus, so a single missed payment will not appear on your credit report. However, if you fall significantly behind and the company sends your account to a collection agency, that collection account will damage your score and remain for seven years.
Is rent-to-own better for credit than regular renting?
Rent-to-own still does not report to credit bureaus, so it does not build your credit any more than regular renting does. The only difference is that your payments eventually lead to ownership. If credit-building is your goal, rent-to-own is still not the right tool.
What is the cheapest way to start building credit?
A credit-builder loan from a credit union is often the cheapest option. Some credit unions offer them for as little as $300 with minimal fees. A secured card typically costs $0 to $95 per year in annual fees, depending on the issuer. Both cost far less than Rent-A-Center's inflated rental prices.
Does Rent-A-Center check my credit when I explore?
Rent-A-Center typically does not perform a hard credit check. The company usually checks your income, employment, and rental history instead. This means explore to Rent-A-Center will not lower your credit score, but it also means the company is not evaluating your creditworthiness the way a lender would.