Is Rental Kharma Legit?

Yes, Rental Kharma is a legitimate Tennessee-based company that has been in business for 9 years. According to their own website, they’ve worked with 72,000 members to improve their credit scores. Rental Kharma will work with both you and your landlord to help you get your rent payment history added to TransUnion and Equifax credit reports. But they make no guarantees that you will see a credit score increase from their rent reporting service. There are several testimonials on their website and they link to their Trustpilot reviews. As of yet, they are unrated on the BBB and they have received only a handful of reviews and complaints. On Google and Facebook both, Rental Kharma has a 4+ star review rating.

How Much Will Rental Kharma Help Improve My Score?

With the different levels of service that Rental Kharma offers, the potential increase in your credit score changes. According to their website, their average customer sees a 40 point increase to their FICO score. However, for customers who chose just the base plan with ongoing reporting and only 6 months of payment history, the quoted credit score increase is closer to 30 points. The average 40 point increase is for customers who opt to use their payment history add-on service and have at least 2 years’ worth of positive payment history. For those who have not yet established a credit profile (no credit lines reporting), you could see a jump from no credit score to the mid 600s if you have two years of positive rent payment history. How much your individual score will increase depends on the unique makeup of your existing credit file. You should also be aware that Rental Kharma is obligated to report any negative rental payment history. So if you have a history of late rent payments, using their service could actually lower your credit score.

How Much Does Rental Kharma Cost?

The initial signup fee for Rental Kharma is $50 and their monthly subscription will set you back $8.95. So, a full year will cost you $157.40 . If you add on all of their recommended services, your total price for a year will be $302.40. That includes full rental history at the rental property for two individuals, plus ongoing rent payment reporting for those same individuals. If you don’t like the service, Rental Kharma does offer a 90-day guarantee period, but you will want to read their terms of service carefully. Rental Kharma will charge you a $25 service fee if your account is flagged as unresponsive or if they were unable to improve your score because of a late rent payment or you failed to provide requested documentation. Additionally, they can outright withhold a refund if they suspect fraud or you tried to use their service to report for a non-eligible property (i.e. commercial property). If you’re looking for a cheaper rent reporting option, perhaps consider BoomPay .

Rental Kharma Review | Digital Honey

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Our Verdict

Rental Kharma is a rent reporting service that allows you to customize your package to your needs.

If you live alone and you’ve only been renting for a few months, then there is no need to pay for services you don’t need. But if you do want to add renters or additional payment history, you can add those services to your account.

This customized level of service along with claims of an average credit score increase of 40 points is backed by a 90-day sa