Leveling the Borrowing Playing Field: Positive Rent Reporting in Philadelphia

Abstract

Advocating for a city housing policy that provides equitable access to capital, financial stability, and opportunity for upper economic mobility for individuals who rent their homes. The majority of Philadelphia’s renters do not have their on-time rent reported to any of the three major credit bureaus, unlike people who are paying a monthly mortgage on a home. The lack of a large recurring payment for housing does not allow for a diverse credit file or a higher credit score. People with Poor to Fair credit can pay upward of $3,400 a year in increased interest rates, additional required deposits for utilities, and higher insurance rates. Upward economic mobility requires stable finances, and with little savings or a Good credit score, renters face challenges in becoming and remaining financially stable. A policy that requires landlords to report on-time rent payments of renters can make a dramatic difference in the ability of renters to take advantage of some of the same opportunities afforded to people who make monthly mortgage payments that are reported to the credit bureaus.