California Legislature Passes Bill to Boost Renters' Credit Scores if They Pay Rent On Time

Currently, millions of California renters are paying their rent on time without seeing any positive impact on their credit scores.Photo byAlex BlockonUnsplash

A new bill, AB 2747, authored by Assemblymember Matt Haney (D-San Francisco), has passed the California State Legislature, aiming to help renters improve their credit scores by allowing them to opt into rent payment reporting. The bill requires landlords of buildings with more than 15 units to give tenants the option to have their positive rent payments reported to credit bureaus.

Assemblymember Haney highlighted the current unfairness in the system, where renters' on-time payments are often not reflected in their credit scores, while missed payments are. "Many renters prioritize their rent payments over all other expenses, yet their on-time payments never boost their credit scores. This is pushing millions of renters into cycles of debt and poor financial health," Haney stated.

Currently, millions of California renters are paying their rent on time without seeing any positive impact on their credit scores. AB 2747 seeks to correct this by allowing renters to build credit through their rent payments, providing a fairer reflection of their financial responsibility. If signed into law, this bill could significantly improve the financial health of many Californians, offering them better access to credit and financial opportunities.