The credit score website Experian has revealed that many letting agents are now happy to report their tenants’ rent payments in order to improve their credit score.
Over 75% of the tenants who have given consent for their rent payments to be recognized by credit reference agencies are noticing a positive change in their monthly credit score.
This advanced has been led by Experian, following the recognition that more than 1 million tenants are renting privately and in the social housing sector.
Over the past couple of years, Experian has been leading the way rent recognition by setting up a system that catches the rent payments from letting agents and over 140 social housing providers. Tenants renting from private landlords are also able to report their payments by using websites such as Canopy and CreditLadder.
According to the Experian Managing Director, Clive Lawson, ‘’ Tenants pay a significant amount of money each month for the roofs over their heads, so it’s right to recognize these regular payments in a similar way as mortgages’’.
Moreover, the access to many online financial services would become easier once a person’s identity is established, this will be achievable by adding rental payment data to the credit reports.
Many lenders are now looking to work with rental data in order to establish a better understanding of their client’s financial situation and help them with decision making.
The Experian CEO, Sheraz Dar, says: “As the first and biggest rent reporting platform in the UK we’re delighted that tenants are now getting the benefit they deserve.”