Do Rent-to-Own Companies Report to Credit Bureaus?

Most rent-to-own companies do not report payment history to the three major credit bureaus (Equifax, Experian, TransUnion), which means your on-time RTO payments typically will not help build your credit score. However, missed payments that result in collections may be reported negatively. Understanding this asymmetry is critical for the roughly 1 in 27 U.S. households that use rent-to-own each year (APRO/RTO HQ) — many of whom are among the 26 million Americans the CFPB classifies as "credit invisible."

This VRTO (Virtual Rent To Own) guide breaks down which companies report, how credit reporting works in the RTO context, and what you can do to build credit while using rent-to-own.

Why Don't Most RTO Companies Report Payments?

RTO agreements are legally classified as leases, not loans, in 47 states. The CFPB v. Snap Finance case in 2024 reinforced this classification — confirming that rent-to-own transactions are terminable leases, not credit products. The credit reporting system was designed around credit products — loans, credit cards, and mortgages. Because an RTO agreement is not a debt obligation (you can return the item at any time), the major bureaus have historically not required or encouraged reporting.

There is also a business consideration: reporting positive payment history could help customers graduate to traditional credit faster, reducing the RTO customer base. Consumer advocates, including the NCLC, have criticized this dynamic as one that traps consumers in a cycle of high-cost transactions without building the credit history they need to access cheaper alternatives.

According to APRO, fewer than 15% of RTO transactions are reported to any credit bureau as of their most recent member survey. This means the vast majority of on-time payments — even those made faithfully for 12, 18, or 24 months — leave no trace on a consumer's credit file.

Which Companies Report to Credit Bureaus?

A small but growing number of RTO providers have begun voluntary credit reporting. Here is what each major provider's policy looks like based on their public disclosures:

Companies That Report Positive Payment History

• Progressive Leasing — reports completed lease-to-own agreements to Equifax. Progressive is the largest virtual RTO provider, partnering with over 30,000 retail locations. Per PROG Holdings' SEC filings, they report completed agreements (not in-progress payments) to Equifax. This means you only get credit reporting benefit if you complete the full agreement or exercise the early purchase option.
• Acima (owned by Rent-A-Center) — began reporting completed leases to TransUnion. Similar to Progressive, reporting occurs upon agreement completion, not during the payment period.
• Snap Finance — reports to Equifax. Snap's product is structured as a loan rather than a lease in many states, which changes the regulatory framework. The 2024 CFPB v. Snap Finance case examined this structure closely. Because Snap operates more like a lender, credit reporting is part of their standard practice.

Companies That Do Not Report Positive History

• Rent-A-Center — the largest pure-play RTO company (approximately 1,700 locations) does not report positive payment history to credit bureaus as standard practice, per their publicly available customer agreements.
• Aaron's — with approximately 1,300 locations, Aaron's also does not report positive payment history. Their customer agreement explicitly states this.
• Buddy's Home Furnishings — approximately 300 franchise locations. No positive credit reporting.
• FlexShopper — online-focused virtual RTO platform. Does not consistently report positive payment history.
• Koalafi (formerly West Creek Financial) — focuses on essential purchases. Reporting policies vary by agreement type.

You can compare providers in your area using the VRTO company directory and check which stores are nearby via our state-by-state listings.

Positive vs. Negative Credit Reporting: The Asymmetry Problem

The most important concept to understand is the reporting asymmetry in rent-to-own:

Positive reporting means your on-time payments are shared with credit bureaus, helping you build a payment history that can improve your credit score. Most RTO companies do not do this.

Negative reporting occurs when a debt is sent to a collection agency, which then reports the delinquent account to one or more credit bureaus. Almost all RTO companies will pursue collections if you stop paying without returning the item — and collection agencies almost always report to the bureaus.

This creates an unfair dynamic: you take all the downside risk (collections damaging your credit) without getting the upside benefit (on-time payments building your credit). The CFPB has acknowledged this asymmetry in multiple publications on alternative financial services.

What Happens If You Default on an RTO Agreement?

If you stop making payments and do not return the item, here is the typical escalation path:

1. Late payment notices — the store will contact you, usually by phone and mail, to request payment or the return of the merchandise.
2. Internal collections — most RTO companies have an internal collections process lasting 30 to 90 days.
3. Third-party collections — if internal efforts fail, the account may be sold or assigned to a collection agency. This is when the balance typically appears on your credit report.
4. Credit impact — according to the CFPB, a collection account can reduce your FICO score by 50 to 100 points. This negative mark can remain on your report for up to seven years under the Fair Credit Reporting Act.
5. Potential legal action — in some cases, the store or collection agency may pursue a civil judgment, which can lead to wage garnishment in some states.

The simplest way to avoid this entirely is to return the item before the account goes to collections. You lose the payments already made, but you protect your credit.

Can You Get RTO Payments Reported Voluntarily?

Several third-party services allow consumers to self-report recurring payments to credit bureaus. While these were designed primarily for housing rent, some may accept RTO payment documentation:

• Experian Boost — allows consumers to add utility and streaming payments to their Experian file. RTO payments are not specifically listed as eligible, but some consumers have reported success adding them as recurring bills.
• Self-reporting services — companies like Rental Kharma and LevelCredit report rent payments; eligibility for RTO payments varies by service and how your agreement is structured.
• UltraFICO — uses banking data (checking and savings account history) to supplement your credit file. While it does not directly report RTO payments, a history of consistent account balances can help.

The effectiveness of these services for RTO payments is limited and varies. The CFPB recommends verifying with each service whether your specific payment type qualifies before paying any enrollment fees.

How to Build Credit While Using RTO

Since most RTO payments will not build your credit, consider these parallel strategies recommended by the CFPB and financial literacy organizations. The typical RTO total cost is 1.5x to 2.5x the retail price, so building your credit score to access cheaper financing options should be a priority:

• Secured credit card — deposit $200 to $500 to get a credit card that reports to all three bureaus. Use it for small purchases and pay in full each month. This is the single most effective credit-building tool for people with no credit history.
• Credit-builder loan — offered by credit unions and online lenders. You make payments into a savings account, and the lender reports your on-time payments. The money is released to you when the loan is paid off. Typical terms are $300 to $1,000 over 6 to 24 months.
• Authorized user status — ask a family member with good credit to add you as an authorized user on their credit card. Their payment history may appear on your credit report, potentially boosting your score immediately.
• Experian Boost — add your cell phone, utility, and streaming payments to your Experian file for a potential score increase of 10 to 20 points.
• Rent reporting — if you pay housing rent, services like Rental Kharma can report those payments to the bureaus. Since you are already paying rent, this is free credit-building potential.

Questions to Ask Before Signing an RTO Agreement

Based on CFPB consumer guidance, always ask these questions about credit reporting before you sign:

• Do you report my on-time payments to any credit bureau? If so, which ones?
• At what point do you report — during the agreement, or only upon completion?
• Will my account be sent to collections if I miss payments or return the item?
• Is there a grace period before a missed payment is considered delinquent?
• Can I get written confirmation of your credit reporting policy?
• If I exercise the early purchase option (EPO), does that count as a completed agreement for reporting purposes?

Use the VRTO payment calculator to estimate your total costs before signing, and always get credit reporting policies in writing.

The Three Credit-Sale States: A Special Case

In Minnesota, New Jersey, and Wisconsin, RTO transactions are legally classified as credit sales rather than leases. This means consumer credit protection laws — including the Truth in Lending Act — may apply, and credit reporting requirements may differ. If you live in one of these states, the store may be required to report your payment activity. Check with your state attorney general's office for specific requirements.

Frequently Asked Questions