Good News for Consumers Looking to Improve Credit Score; Timely Rent Payments May Boost Ratings

Improving credit scores is crucial to access more cashflow and secure loans in future, and a new bill can help consumers boost their ratings by paying utility bills and rent on time. Representatives Kristine C. Howard and Tarik Khan along with Senator Jimmy Dillon stepped forward in proposing these bills as they feel that it is unfair that the score is affected by the payment of these bills. They have the notion that regular payment of these bills should also contribute to improving the credit scores of people in Pennsylvania. 

The first bill will benefit tenants and landlords

There's good news for tenants and households living in rented homes. The first bill aims to modify the Landlord Tenant Act under which landlords who have more than 15 residential rented properties offer an option to their tenants to report their rent payments to the credit bureaus. This would help both the tenants and the landlords. The renters will be able to build an attractive credit score whereas the homeowners will be able to identify the potential tenants based on their credit score and keep only the ones with a good score. The bill also provides an opt-in option and if tenants wish to get their bills reported, homeowners can ask them to pay a small amount as its cost. 

What are the benefits of the second bill?

The second bill that has been proposed for approval focuses on giving benefits to people making timely and regular utility and rent payments. The bill says that the consumers will now have the option to get their timely utility payments reported to the credit reporting companies which would help in credit scores. If the bill is passed, payments on time will also be a score-improving factor and you will enjoy lucrative scores that will in the end prove your credibility.

Several laws already exist that help the general public with their credit scores. For instance, The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection of consumers' credit information and access to their credit reports. With this law, one can place restrictions on the usage of their credit reports as everyone does not like to open their credit books. The above two laws mentioned are waiting for approval by the Pa. House of Representatives and it would be quite a relief to the users once approved. 

Elevate your credit score with these proven strategies

1. Do not ever miss any of your payments, be it utility or credit cards. 

2. Have a good track record of your credits by building a strong credit file. 

3. Avoid overdue bills and opt for a debt management plan (DMP) if necessary.

4. Don't let your due balances accumulate as it will result in a poorer credit score.

5. Avoid opening too many accounts or stocking a pile of credit cards, if you are not able to manage it. 

6. Use credit or finance management apps to save yourself from due bill penalties. 

7. Increase your credit limit.