Appearing in The New York Times on Jan. 26, 2024, Ann Carrns talks to Ariel Nelson, staff attorney at NCLC about how renters can increasingly choose to have their timely monthly payments reported to the credit bureaus, with the goal of improving their credit profile to qualify for loans.
Consumers should be cautious, said Nelson. Reporting on-time payments can make sense for people who are able to consistently pay on time and may be renting temporarily while saving to buy a home. But there can be risks, particularly for lower income tenants who may struggle to pay on time.
If a tenant opts into reporting and pays on time for several months but then hits a rough patch and falls behind, the late payment isn’t reported. But lenders might interpret the absence of rental information on the credit report for a month or two as a negative
Ariel Nelson, staff attorney at the National Consumer Law Center
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