Credit reference agency Equifax UK and ClearScore have extended their 10-year partnership with an initiative that feeds rental payment data directly into Equifax credit files.
The scheme targets renters with little or no traditional borrowing history, whose on-time rent payments have not counted towards their credit profile until now.
ClearScore users will be able to connect their bank account through open banking, free of charge, to verify ongoing rent payments. A monthly transaction file will then add the rental payment data to the user’s Equifax credit file, giving lenders a fuller view of affordability when they assess an application.
Rent is typically the largest monthly outgoing for an individual, yet on-time payments have historically been absent from mainstream credit files. Without a traditional credit footprint, people may struggle to obtain mortgages, credit cards or other loans.
Equifax already works with other industry partners to bring rental payment data into credit files, and the ClearScore route lets the app’s rental users share and verify their payment history through open banking. The companies put the number of tenants who could gain access to fairer credit at up to 9 million.
“This expansion of our strategic long-term partnership with ClearScore marks another exciting step towards greater financial inclusion,” said David Bernard, chief executive, UK & Ireland, at Equifax.
“By incorporating more rental data into Equifax credit reports, we’re giving the UK’s nine million renters1 greater control over their credit profiles and helping them to access fairer borrowing terms. At the same time, it gives lenders the ability to make more informed decisions, helping more people take their first steps towards owning property and living their financial best.”
“By integrating rental data into consumers’ Equifax credit files, we are leveling the playing field for millions of renters and thin-file customers, turning years of on-time payments into tangible opportunities for affordable borrowing and mortgage approvals,” notes Justin Basini, co-founder and chief executive of The ClearScore Group.
“We’re proud to deepen our decade-long partnership with Equifax, built on a shared ambition of making the credit ecosystem fairer and more accessible.”
