Finance

New initiative helps tenants strengthen credit score

Rozi Jones -
|
30th August 2016
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"Landlords will also benefit from our partnership with Experian. The Rental Exchange will provide added confidence and reassurance in the quality of tenant such a scheme will attract."

A new initiative, launched by Experian, aims to help private tenants strengthen their credit histories by recording their rental payments – thereby receiving recognition in a similar way to mortgage payers.

Experian says that many people renting lose out on the opportunity to build their credit scores, and so will be at a disadvantage when trying to secure everyday online deals such as car insurance and mobile phone contracts.

As well as helping to strengthen credit histories, The Rental Exchange also supports the more successful electronic verification of a tenant’s identity when they search and apply for financial services online.

One of the first agents in the UK to pioneer the scheme is Karl Tatler Lettings, with properties across Wirral and Liverpool.

Karl Tatler's head of lettings, Dave Seed, said: "The initiative is a way to strengthen your credit report, without needing to take on new credit or debt, just by paying your rent on time each month. People should not be at a financial disadvantage for renting and deserve equal access to services many of us frequently use.

“Landlords will also benefit from our partnership with Experian. The Rental Exchange will provide added confidence and reassurance in the quality of tenant such a scheme will attract. These tenants will have a greater incentive and motivation to pay their rent on time as it will directly impact their credit score, potentially leading to even lower rent arrears.”  

Rental Exchange partner at Experian, Mark Goodfellow, added: “What many people don’t realise is that you need a good credit rating to access mainstream financial services, from bank accounts, credit cards, personal loans and mortgages, to mobile phone and utilities contracts. In the past, building a good credit rating has been easier for homeowners than for tenants, because mortgage payments are factored in, but with The Rental Exchange we want to help level the credit rating playing field."

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