Rent-A-Center does not report to credit bureaus, so renting from them will not build your credit history
Rent-A-Center is a rent-to-own company — you pay weekly or monthly to use furniture, electronics, or appliances, with the option to own them after enough payments. The company does not report your on-time payments to Equifax, Experian, or TransUnion, the three major credit bureaus. This means making every payment on time at Rent-A-Center does nothing for your credit score.
If you miss a payment or return items, Rent-A-Center may report that negative information to the bureaus or send your account to a collection agency. So while good payment history does not help you, missed payments can hurt you. This is the opposite of how credit cards or loans work — those report both positive and negative activity.
If you are looking to build credit, renting from Rent-A-Center is not a tool for that goal. There are other options that actually report to the bureaus and let you build a credit history while you use the product or borrow money.
Key Takeaways
- Rent-A-Center does not report on-time payments to credit bureaus, so paying on schedule will not raise your credit score.
- Missed payments or returned items may be reported to the bureaus or sent to collections, which can lower your score.
- Secured credit cards, credit-builder loans, and becoming an authorized user on someone else's card all report to the bureaus and actually build credit.
- Rent-A-Center is useful if you need furniture or electronics now and cannot afford to buy, but it should not be your strategy for credit building.
Why Rent-A-Center does not help your credit
Rent-A-Center is a retail company, not a lender. They own the items you rent and can take them back at any time if you stop paying. Because you never own the item and never borrow money, there is no loan to report to the credit bureaus. Credit bureaus track borrowing and repayment — they do not track rental agreements.
The company has no incentive to report positive payment history. Rent-A-Center makes money whether you pay on time or late, as long as you keep paying. They only report to the bureaus when something goes wrong — a missed payment, a collection referral, or a judgment against you — because that is when they need the bureaus to help them collect the debt.
What happens if you miss a Rent-A-Center payment
Missing a payment at Rent-A-Center can damage your credit score, even though on-time payments do not help it. If you fall behind, the company may report the delinquency to the credit bureaus after a certain number of missed payments. This negative mark will lower your score and stay on your credit report for up to seven years.
Rent-A-Center may also send your account to a collection agency if you owe money when you return the items or if you stop paying altogether. A collection account is one of the most damaging things on a credit report and will hurt your score significantly. If you cannot pay what you owe, the collection agency may sue you, which creates a judgment that also appears on your report.
Better ways to build credit if you need furniture or electronics
If you need items now and want to build credit at the same time, a secured credit card is a real alternative. You put down a cash deposit (usually $200 to $2,500), and the card issuer gives you a credit line for that amount. You use the card to buy what you need, pay the bill on time each month, and the issuer reports your payments to all three bureaus. After six to twelve months of on-time payments, you may be moved to a regular unsecured card and get your deposit back.
A credit-builder loan works differently but also builds credit. You borrow a small amount (usually $300 to $1,000) from a credit union or online lender, but the money goes into a savings account you cannot touch until you repay the loan. You make monthly payments, and the lender reports each one to the bureaus. Once you finish paying, you get the money back plus any interest you earned. You have built credit and saved money at the same time.
If someone you trust has good credit, becoming an authorized user on their credit card can also help. Their payment history and credit limit may be added to your credit report, which can raise your score. This works only if the primary cardholder makes on-time payments and keeps the balance low.
The real cost of Rent-A-Center versus buying outright
Rent-A-Center is expensive compared to buying the same item outright or financing it through a credit card. A television that costs $400 to buy might cost $50 per week for 18 months at Rent-A-Center, which adds up to $1,300 or more by the time you own it. You pay three times the retail price for the convenience of spreading payments over time.
If you use a secured credit card instead, you buy the same television for $400, pay it off over a few months, and build credit in the process. The only cost is the interest on the card, which is usually less than the markup Rent-A-Center charges. You also own the item when ready instead of renting it.
When Rent-A-Center might make sense anyway
Rent-A-Center is useful in specific situations where the alternatives are not available. If you have no credit history and no way to open a credit card, and you need a refrigerator or bed right now, renting may be your only option. The company does not check your credit score or require a credit history to rent.
Rent-A-Center also lets you return items if your circumstances change. If you rent a laptop for work and lose the job, you can return it without owing the full purchase price. With a credit card purchase, you would still owe the full amount even if you no longer need the item.
But if your goal is to build credit, Rent-A-Center should not be your first choice. The cost is too high and the credit benefit is zero. Use it only if you genuinely need the item now and have no other way to get it.
Frequently Asked Questions
Will paying off my Rent-A-Center account early help my credit?
No. Paying early, on time, or late makes no difference to your credit score because Rent-A-Center does not report to the bureaus. The only way your account affects your credit is if you miss payments or default, which will hurt your score.
Can I use Rent-A-Center to build credit if I have no credit history?
No, but there are better options. A secured credit card or credit-builder loan will actually report to the bureaus and build your history. Both are designed for people with no credit or bad credit, and both cost less than Rent-A-Center over time.
What if Rent-A-Center sends my account to collections?
A collection account will appear on your credit report and lower your score significantly. It will stay on your report for seven years. You can try to negotiate a settlement with the collection agency, but the account will still show as collected or settled, which is better than unpaid but still damaging.
Does Rent-A-Center check my credit before I rent?
Rent-A-Center does not require a credit check to rent. They may ask for proof of income and a valid ID, but they do not pull your credit report. This makes it straightforward to rent if you have bad credit, but it also means they have no reason to report your payments to help you rebuild.
Is there a way to build credit while renting furniture?
Not through Rent-A-Center directly. But you could use a secured credit card to buy furniture outright from a regular retailer, which builds credit and usually costs less. Or you could rent from Rent-A-Center for the item you need and separately open a secured card to build credit with other purchases.