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One way to overcome limited or negative credit is by adding positive data points to your credit history. While rental payments are not customarily reported to credit bureaus, a rent reporting service like Rental Kharma can help you leverage those monthly payments to improve your credit score.
Rental Kharma can report your entire history of payments made at your current address and offers a lengthy satisfaction guarantee. However, the service charges an above-average setup fee and requires participation from the property owner. Read on to see whether it's a good fit for you.
Rental Kharma Overview
Rental Kharma is based in Littleton, Colorado, but its rent reporting services are available to eligible renters nationwide. With services available to most non-business renters, the company claims to have served 85,000 members since its founding in 2011. Rental Kharma further boasts its members have seen an average initial credit score increase of 40 points, and an average ongoing credit score increase of five points per month.
Rental Kharma is not one of the larger players in the rent reporting industry, but it makes our list of the best rent reporting services because it offers two stand-out features. First, Rental Kharma reports all your prior rent payments at your current address to the credit bureaus while most rent reporting services only add a maximum of 24 months of prior rent payments. Rental Kharma also has a 90-day money-back guarantee.
On the other hand, Rental Kharma is more expensive than its competitors. It also doesn't report to all three credit bureaus, which severely limits is usefulness.
There is no widely recognized accreditation specific to the rent reporting industry, and unlike some rent reporting services, Rental Kharma is not accredited by the Better Business Bureau. However, the company has an average Trustpilot rating of 4.8 stars out of five over 1,100 reviews, with 89% of respondents leaving a review of four stars or better. Rental Kharma also has a rating of 4.1 stars out of five on Google, though that rating comprises only around 115 reviews.
One common complaint among negative reviews is difficulty getting rental payments reported accurately. Some users had trouble connecting Rental Kharma with their landlord or property manager, and others found that payment information was still not conveyed after a connection had been established. Other common complaints include a lack of results even when payments were reported and difficulty canceling the service.
How Rental Kharma Works
Rental Kharma helps boost your credit score by reporting your rental payments to credit bureaus. Those payments are factored into both your payment history and length of credit history. So long as you pay rent on time and in full, the effect will be positive (or neutral at worst). If you miss a payment, however, then rent reporting could be counterproductive.
You can enroll in Rental Kharma if you pay rent to a property manager, or to a landlord or family member who owns the property. You may also be eligible in other circumstances where the owner or manager can verify that you live and pay rent at the property. If you're uncertain whether you qualify, you can call Rental Kharma for clarification. Enrollment is available either online or by phone, with same day verification offered at no cost.
After you enroll, Rental Kharma will call your landlord or property manager to verify ownership of the property, as well as your tenancy and payment histories. This process should take less than five minutes, but participation from your landlord or property manager is required. Without it, Rental Kharma won't be able to confirm your eligibility.
Once you're fully onboard, Rental Kharma will connect with your landlord or property manager each month to confirm your rental payments. The company then reports that payment data to two of the three major credit bureaus, TransUnion and Equifax, but not to Experian. Your enrollment includes retroactive reporting of your entire rental history at your current address, making the service more impactful if you've lived in the same place for an extended period. However, utilities and other payments associated with your rental are not reported.
Rental Kharma claims that 90% of members see results within 5 business days when payments are reported promptly. The company offers a score impact calculator that estimates how many points your score is likely to go up based on factors like your lease term, current credit score, and other open credit accounts. You can expect the impact of rent reporting to be greatest if you have a low credit score or limited credit history, and if you've lived at your current address for a long time.
How Much Does Rental Kharma Cost?
Rental Kharma offers a single tier of service at a flat rate. Members pay a $75 one-time setup fee along with a monthly fee of $8.95 that begins 30 days after enrollment. While there is no discounted rate for individual renters, you can add a spouse or roommate for a lower $25 setup fee and a reduced ongoing rate of $5 per month (on top of what the primary member pays). You can also lower your costs by referring other members, which saves both you and the other member $25 per referral.
Rental Kharma's standout feature is its 90-day, 100% money-back guarantee, which includes both the setup fee and any monthly fees you have paid to date. The guarantee applies not only if your rental history cannot be verified (like if your landlord refuses to participate), but also if you're simply unhappy with the results. Refunds can be requested by phone or email, and are processed within three business days (though funds may take longer to appear in your account).
You can cancel your Rental Kharma membership anytime by filling out an online form. Cancellations are effective immediately upon submission of the form, though as noted above, some reviewers mentioned difficulty canceling the service. If you want to cancel because you haven't seen your score change, Rental Kharma offers a free credit review to see if they can help produce results. Canceling will cease reporting of your rental payments to credit bureaus, which may undo gains in your credit score. However, note that Rental Kharma is required by the credit bureaus to continue reporting payments through the end of your lease.
How Rental Kharma Compares to the Competition
Several aspects of Rental Kharma compare favorably to other rent reporting services. First, its 90-day, 100% money-back guarantee leads the industry, as many competing guarantees expire much faster or limit which fees can be refunded. Rental Kharma's policy gives you ample time to assess the impact rent reporting has on your credit score and decide if the service is worthwhile.
Next, Rental Kharma reports all past rental history at your current rental address, whereas many competitors report only up to 24 months of past payments. The longer reporting period is advantageous if you're a long-term renter, since it adds more positive data points to your credit history (so long as you've consistently paid your rent on time and in full).
On the downside, Rental Kharma charges a relatively high $75 setup fee, whereas some competitors charge nominal setup fees (or none at all). However, split between two people with a reduced cost for a spouse or roommate, Rental Kharma's rates are closer to the average among rent reporting services.
| Rent Reporting Services | Cost |
| Rental Kharma | |
| Boom Pay | |
| Level Credit | |
| RentReporters |
Another negative is that Rental Kharma only reports to two of the major credit bureaus. This may not be an issue in many scenarios, since lenders often pull reports from multiple bureaus. However, if you're dealing with a lender or other financial institution that happens to pull only your Experian report, they won't see your rental payment history and whatever impact that has on your credit score.
Finally, Rental Kharma requires a direct interface with your landlord or property manager to confirm your rental payments each month. That contrasts with other services that verify payments by connecting with your bank records, or by accepting payment themselves and passing it on to your landlord. The need to connect with your landlord each month leaves room for error: if your landlord is unresponsive, for example, then your payments don't get reported.
Rental Kharma Frequently Asked Questions
What does Rental Kharma report to?
Rental Kharma reports rental payments to both TransUnion and Equifax, but not to Experian. If a lender or financial institution looks exclusively at your Experian file, your credit score will not reflect data from your rental payment history.
How to contact Rental Kharma customer service
You can reach Rental Kharma customer service by phone at 720-307-1466 or via email at support@rentalkharma.com. You can also schedule an appointment on Rental Kharma's calendly.
Does Rental Kharma ask for a social security number?
Rental Kharma generally does not ask for your social security number when you enroll. The company can usually match you with your credit profile based on other personal information, but may confirm the last four digits of your social security number or request additional documentation if there is any uncertainty.