Prompt rent payments feature in new credit score
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
People living in private rented accommodation who pay their rent on time could soon get a boost to their credit rating, following the launch of the Rental Exchange service by Experian.
While information about mortgage payments or arrears is included on credit reports, rent payment information currently is not. The new service will record a tenant's payment history, with their permission, strengthening their credit history and potentially helping them qualify for more and lower-cost borrowing.
Experian, a credit-ratings company, says its new service could provide a boost for first-time buyers as lenders will be able to more easily verify their ability to pay out a regular, large sum each month.
Sian Williams, the head of Transact, the national forum for financial inclusion, comments: "This is a very welcome development. The key to its success will be ensuring that consumers are well educated about the service.
"This will include making clear the impact that missing a rental payment could have on their credit rating, especially if it is paid via housing benefit which is often out of tenants' hands."
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments