For many renters, improving your credit score is one of the top things on your mind. Luckily for CA residents, a new bill that was just signed by the senate, it’s a little easier.
Senate Bill 1157, written by Steven Bradford (D – Gardena), requires that landlords who manage medium to large subsidized, multi-family housing units in California, offer tenants an option of having their rental payments reported to a major credit bureau. Senator Bradford spoke about the unique aspects of the bill.
“This bill, the first of its kind in the nation, starts to correct the longstanding inequity were those with the least resources have to fight the hardest to establish and improve their credit scores,” Senator Bradford said. “Having a good credit score is the first step in helping renters achieve the American dream of homeownership.”
Senator Bradford also spoke about an issue on the minds of many renters: why their good rental payment history should count towards improving their credit score.
“Most renters today do not receive a benefit to their credit scores when they consistently pay their rent on time,” he said. “SB 1175 changes that for some of our most at-risk tenants. Renters and working families have suffered because of COVID-19 and this bill will provide an opportunity for families to responsibly build their credit after this crisis.”
In California alone, around 45% of the population are renters, according to the U.S. Census American Community Survey. Currently, many renters only see an impact on their credit score by their rental payments when they fail to make a payment on time. This sets them up for credit failure. Without a strong credit score, buying their own home becomes an unachievable dream. That’s why this new legislation is so important. And by focusing on subsidized housing, the bill focuses on those renters who are more likely to receive the greatest benefits from both establishing and improving their credit without having to take out a loan or get another credit card with a high-interest rate.
The service starts with a renter simply signing up. Then, they pay their monthly rent on time, as they would normally do. RentPlus then reports the good rental payment history to the credit bureaus. The credit bureaus record the monthly payments on your credit report, which then builds your credit profile. And so, by doing something you would do anyway, RentPlus helps your credit improve every month.
RentPlus not only helps residents by boosting their credit score, but residents can receive strong financial tools as well.
No one wants a lower credit score. Poor credit impacts a person’s life in many ways, like being able to secure a loan. This new legislation is the first of its kind and it will interesting to see what other states may see their legislation follow suit. In combination with services like RentPlus those who have found themselves with a lower credit score are going to be able to build their ladder out of a hole, rather than feeling stuck where they are. You can sign up for RentPlus today and start building your credit profile. See how RentPlus can improve your life today.