Stringer wants on-time rent payments to count toward credit score

Experian launched opt-in program in 2010, but it’s not widely used

New York /
Oct.October 23, 2017 09:40 AM

City Comptroller Scott Stringer wants tenants who pay their rent on time to be able to boost their credit scores the way homeowners do when paying their mortgages.

Stringer plans to announce an effort Monday that will encourage landlords and property management companies to give their tenants, especially low-income ones, an option to report rent payments in a way that will increase their credit scores, the New York Times reported.

A study conducted by his office found that 76 percent of tenants paying less than $2,000 a month would see their scores improved by such a policy.

“This could create a powerful credit history that could lift you out of poverty,” he told the Times.

The New York City Housing Authority has a pilot program that allows tenants to report rent payments, but as of last week it only had “one person on board,” NYCHA senior advisor Tischelle George said.

George said NYCHA is trying to recruit some of the roughly 7,000 residents at the Queensbridge Houses into the program.

Advocates for tenants and low-income people have been promoting the policy since the credit-rating firm Experian introduced its opt-in program in 2010. But the system has not been adopted widely, and it can be burdensome for landlords and property management companies that have to put infrastructure in place to comply with federal credit reporting laws, according to Sarah Chenven, deputy director of the nonprofit Credit Builders Alliance.

But the incentive to pay on time to boost a credit score could disenfranchise renters who withhold rent from landlords as a bargaining chip to improve poor housing conditions, according to the National Consumer Law Center.

“There’s definitely pitfalls to it when the landlord-tenant relationship is not good, and in New York City, that’s pretty frequent,” tenant-advocacy attorney James Fishman said. [NYT]Rich Bockmann


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
 9 Olde Towne Lane
Southampton home in exclusive enclave sells for $34.5M
Southampton home in exclusive enclave sells for $34.5M
Carl Liebert, CEO of kwx and Marc King, president of Keller Williams (V Foundation, Keller Williams)
Keller Williams has its best Q1 ever with $98B in sales
Keller Williams has its best Q1 ever with $98B in sales
Better.com CEO Vishal Garg (Better.com, iStock)
Mortgage lender Better to go public via SPAC merger
Mortgage lender Better to go public via SPAC merger
The Penthouse at 60 Broadway in Williamsburg. (Compass)
Brooklyn sees 41 luxury deals inked last week
Brooklyn sees 41 luxury deals inked last week
26 Bank Street and Connie Milstein (Google Maps)
Connie Milstein’s $20M West Village townhouse tops Manhattan contracts
Connie Milstein’s $20M West Village townhouse tops Manhattan contracts
Slate Property Group's Martin Nussbaum and a rendering of the project
Hakimian, Certes land $59M loan for East Harlem multifamily project
Hakimian, Certes land $59M loan for East Harlem multifamily project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...