Rent-A-Center Does Not Report to Credit Bureaus
Rent-A-Center rental payments do not build credit history. The company does not report your on-time payments to Equifax, Experian, or TransUnion — the three major credit bureaus that track credit scores. Even if you rent from Rent-A-Center for years and pay every bill on time, those payments will not appear on your credit report or raise your credit score.
Rent-A-Center is a rent-to-own retailer, not a credit provider. Their business model is based on weekly or monthly rental fees, not credit extension. Because they do not extend credit, they have no reason to report to the bureaus, and they do not.
This is different from a credit card or a secured credit card, where the lender reports every payment to the bureaus. If you are trying to build credit history from scratch, renting from Rent-A-Center will not help that goal.
Key Takeaways
- Rent-A-Center does not report rental payments to any of the three major credit bureaus, so renting furniture or electronics there will not build your credit score.
- A secured credit card, by contrast, reports every payment to the bureaus and is designed specifically to build credit history.
- Rent-A-Center may report missed or late payments to collection agencies, which can damage your credit if the debt is sold or referred.
- If you are building credit, a secured card with a small deposit is a more direct path than any rent-to-own arrangement.
When Rent-A-Center Can Hurt Your Credit
Although Rent-A-Center does not report positive payment history, they can report negative information. If you fall behind on rental payments, Rent-A-Center may refer your account to a collection agency. Once a collection agency takes over, the debt can appear on your credit report and lower your score.
A collection account stays on your credit report for seven years from the date of first delinquency, even if you pay it later. This damage is real and long-lasting, so it is worth paying Rent-A-Center on time even though the on-time payments themselves do not help your score.
Rent-A-Center also conducts a hard inquiry when you explore to rent. A hard inquiry can lower your score by a few points, though the effect is temporary. If you explore multiple times in a short period, the damage adds up.
How a Secured Credit Card Builds Credit Instead
A secured credit card works the opposite way. You deposit money with the card issuer — usually $200 to $2,500 — and that deposit becomes your credit limit. You then use the card to make small purchases and pay the bill in full each month.
The card issuer reports every payment to all three credit bureaus. After six to twelve months of on-time payments, your credit score will rise. After twelve to eighteen months, many issuers will convert your account to a regular unsecured card and return your deposit.
A secured card costs money upfront (your deposit), but it is designed to build credit. Rent-A-Center costs money every month and builds nothing. If credit building is your goal, the secured card is the faster and more direct route.
What Rent-A-Center Reports to Collection Agencies
Rent-A-Center's reporting practices focus on debt collection, not credit building. If you stop paying rent, the company will attempt to collect the debt themselves for a period of time. If that fails, they sell or refer the debt to a third-party collection agency.
Once a collection agency owns or services your debt, they report it to the credit bureaus. The collection account will show on your credit report with a status of "in collections" or "referred to collection." This status is one of the most damaging marks on a credit report and will lower your score significantly.
The collection agency may also sue you in small claims court to recover the debt. A judgment against you can also appear on your credit report and make it harder to rent an apartment, get a loan, or open a credit card in the future.
Rent-to-Own vs. Buying Outright
Rent-A-Center's rent-to-own model means you can eventually own the item if you complete all payments. However, the total cost of renting to own is usually much higher than buying the item outright or on a credit card.
For example, a television that costs $400 to buy might cost $15 per week to rent. Over two years, that adds up to $1,560 — nearly four times the purchase price. You pay this premium for the flexibility of not having to pay the full amount upfront.
If you have a credit card or a secured credit card, you could buy the item now and pay it off over time while building credit. If you do not have a credit card, a secured card is a better investment than a rent-to-own agreement, because the card builds credit while the rent-to-own does not.
Other Ways to Build Credit Without a Credit Card
If you cannot or do not want to open a secured credit card, there are other ways to build credit that Rent-A-Center cannot match. A credit-builder loan is a small loan designed specifically for credit building. You borrow $500 to $1,000, make monthly payments, and the lender reports every payment to the bureaus. After you pay off the loan, you get the money back.
You can also become an authorized user on someone else's credit card account. If the primary cardholder has good payment history, their account may appear on your credit report and help your score. This requires trust and a willing family member or friend, but it costs nothing.
A third option is a credit-builder savings account, offered by some credit unions and online banks. You deposit money into a savings account, and the bank reports your deposits and withdrawals to the credit bureaus as if they were loan payments. After a set period, you get your money back plus interest.
Frequently Asked Questions
Can I use Rent-A-Center to build credit if I pay on time?
No. Rent-A-Center does not report on-time payments to the credit bureaus, so paying on time will not raise your credit score. Only missed or late payments that go to collection will appear on your credit report.
Will Rent-A-Center hurt my credit if I pay everything on time?
The hard inquiry when you explore may lower your score slightly, but on-time payments will not hurt it. However, if you miss payments and the debt goes to collection, the damage will be significant and long-lasting.
Is a secured credit card better than Rent-A-Center for building credit?
Yes. A secured card reports every payment to the bureaus and is designed to build credit. Rent-A-Center does not report positive payments at all. A secured card is faster and more direct if credit building is your goal.
What happens if I stop paying Rent-A-Center?
Rent-A-Center will attempt to collect the debt. If unsuccessful, they will refer it to a collection agency, which will report it to the credit bureaus. A collection account can lower your score by 100 points or more and stay on your report for seven years.
Can I return items to Rent-A-Center without penalty?
Yes, you can return rented items at any time without owing the remaining balance. However, you will not receive a refund for payments already made. Returning items straightforward stops future charges.