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New initiative to help tenants strengthen credit score
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A new initiative has been launched in order to help private tenants improve their credit histories by recording rental payments. As such, they will then receive recognition in the same way as mortgage payers.
The scheme has been announced by Experian, which believes many renters stand to lose out on an opportunity to build up their credit scores. They will in turn be at a disadvantage when attempting to secure online deals for features such as car insurance and mobile phone contracts.
Boosts
Alongside helping to strengthen credit histories, The Rental Exchange also plans to give support to the electronic verification of a tenants’ identity when they search for financial assistance online.
One of the initial agents in Britain to pioneer the scheme is Karl Tatler Lettings, with properties across Liverpool.
Head of Lettings at Karl Tatler, Dave Seed, observed, ‘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 a financial disadvantage for renting and deserve equal access to services many of us frequently use.’[1]
‘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 rents.’[1]
New initiative to help tenants strengthen credit score
Services
Rental Exchange partner at Experian, Mark Goodfellow, said, ‘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.’ [1]
[1] http://www.propertyreporter.co.uk/finance/new-initiative-helps-tenants-strengthen-credit-score.html
