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 consumers using RTO as a stepping stone toward better credit.

Why Don't Most RTO Companies Report Payments?

RTO agreements are legally classified as leases, not loans, in 47 states. 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. According to APRO, fewer than 15% of RTO transactions are reported to any credit bureau as of their most recent member survey.

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.

Which Companies Do Report?

A small number of RTO providers have begun voluntary reporting:

• Progressive Leasing, reports to Equifax on completed lease-to-own agreements, per their customer disclosures
• Acima, began reporting to TransUnion for customers who complete their agreements
• Snap Finance, reports to Equifax, as their product is structured as a loan rather than a lease in many states

The two largest traditional RTO chains, Rent-A-Center and Aaron's, do not report positive payment history to credit bureaus as a standard practice, according to their publicly available customer agreements. Always ask the specific store or provider whether they report before signing.

What About Negative Reporting?

Here is the critical asymmetry: while on-time payments usually go unreported, accounts sent to collections typically are reported. If you stop making payments without returning the item, the store may send the outstanding balance to a third-party collection agency. According to the CFPB, collection accounts appear on your credit report and 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.

Can You Get RTO Payments Reported Voluntarily?

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

• Experian Boost, allows consumers to add utility and streaming payments to their Experian file, though RTO payments are not specifically listed as eligible
• Self-reporting services, companies like Rental Kharma and LevelCredit report rent payments; eligibility for RTO payments varies

The effectiveness of these services for RTO payments is limited. 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:

• 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.
• 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.
• 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.
• Experian Boost, add your cell phone, utility, and streaming payments to your Experian file for a potential score increase.

Questions to Ask Before Signing an RTO Agreement

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

• Do you report my on-time payments to any credit bureau? If so, which ones?
• 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?

VRTO (Virtual Rent To Own) includes credit reporting information in our store profiles when available, so you can factor this into your decision when comparing providers in your area.