California will now require landlords of multi-family housing to give tenants the option to opt into having their rent payments reported to the credit bureaus.
They can opt in to having this reported on their credit report. That doesn’t automatically mean any score will reflect it. Lenders pull which credit reports they want, and they keep what they want from credit reports and calculate their own approach. Just shoving this on the credit reports won’t necessarily mean all credit reports have it accurately, or force them to use the reports that have this information, or even use this information or any particular score. They likely calculate their own.
This is why sometimes you find that the “score” they have when buying a car or house differs from the score you thought you had.
People should be aware their is no single credit score. All scores are made-up and no standard exists. It’s all about the content on the report and how it is factored in.
I’m not saying this isn’t good news, but the headline is very misleading and this step forward should be a lot more forward than it is.
Headline is misleading.
They can opt in to having this reported on their credit report. That doesn’t automatically mean any score will reflect it. Lenders pull which credit reports they want, and they keep what they want from credit reports and calculate their own approach. Just shoving this on the credit reports won’t necessarily mean all credit reports have it accurately, or force them to use the reports that have this information, or even use this information or any particular score. They likely calculate their own.
This is why sometimes you find that the “score” they have when buying a car or house differs from the score you thought you had.
People should be aware their is no single credit score. All scores are made-up and no standard exists. It’s all about the content on the report and how it is factored in.
I’m not saying this isn’t good news, but the headline is very misleading and this step forward should be a lot more forward than it is.