Can I build my credit score by paying my rent?

Yes, with the passing of California’s SB 1157 in Sept. 2020, renters can now build credit their through rental payments.

Rent payment is typically not reported to credit bureaus, which can affect your ability to establish good credit and receive lower interest rates when you apply for a car loan, credit card or mortgage.

SB 1157, a first in the nation bill, requires assisted housing landlords to offer each resident the option of having their rental payments reported to a major credit bureau.

Residents can elect to have their rental payments reported to at least one nationwide credit reporting agency, or request that Landlord (or Landlords third-party service provider) cease reporting their rental payments at any time during their tenancy.

SB 1157 is tailored to tenants most likely to receive the greatest benefit from establishing or improving their credit scores.

Rent reporting data shows clear and consistent results: full rent reporting plays a critical role in helping people without credit scores establish one and helps those with low scores improve theirs.

To find out more about what EBALDC offers its residents regarding SB 1157 click here.