How to improve your credit rating by simply paying your rent
I love this idea, I think it is going to be very popular…
I have been writing for a while about how I am trying to improve my credit rating. After being made redundant a few year ago I fell into debt and even though my circumstances are different now, my credit report is still looking sorry for itself.
However, this fantastic new service may help me build up my credit report once and for all…
Credit Ladder is a new online service which allows private housing tenants to build their credit history simply by paying their normal monthly rent.
The service helps to build an online proof of identity and credit history which in turn provides the tenant with greater access to further credit facilities. It means tenants with stronger credit histories could get better rates on loans and mortgages without having to take on additional debt and at no further cost.
Here’s how it works…
The tenant pays their normal monthly rent via bank transfer through Credit Ladder. Rental payment information will begin building the tenants credit history from the point they sign up, before the data appears on Experian credit reports later in 2016. Using Experian’s Rental Exchange to record the data, Credit Ladder can help a tenant make the transition from renter to homeowner.
Managing Director of Credit Ladder, Asa Bentley said: “Tenants across the country are paying their rent on time, yet not building any more credit as a result. The average tenant pays nearly half of their income in rent and we thought it important they be rewarded for this in a similar way to homeowners being recognised for paying their mortgage every month”. We spoke to Experian who have successfully launched The Rental Exchange for social housing tenants. We both wanted to bring the same benefits to the private rented sector and we are delighted to be the first to offer this service to private tenants.”
Experian’s Jonathan Westley said: “We’re delighted to work with Credit Ladder to be able to offer private renters the opportunity to build their credit histories just by paying their rent. Our research shows there is an appetite among this group to be treated in the same way as mortgage holders and so we hope many more landlords and letting agents will sign up to the Rental Exchange in the future.”
The best way to keep check of your credit report is to sign up to Clear Score. It is completely free to use, plus it is part of Experian so you know you’re safe. Click here for more information on Clear Score…
