Mar

Credit checking giant backs platform hoping to disrupt traditional tenant referencing

admin

London firm CreditLadder is now partnered with global giant Equifax to help landlords and letting agents reference tenants by checking their rent payment track record.

An online platform that both enables tenants to improve their
credit score by paying their rent on time, and landlords and letting agents to
check their rent payment track record, has begun a partnership with one of the UK’s
largest credit checking agencies, Equifax.

CreditLadder’s service helps landlords and letting agents better
understand which prospective tenants have the best rent payment records if they
use CreditLadder’s tenant referencing service that uses its own rent recording
data.

This is the same data that is also then added to a tenant’s credit
history and used by Equifax, which in turn helps the UK’s main high street
lenders determine creditworthiness.

The announcement makes CreditLadder the UK’s largest rent
reporting platform; it has thousands of tenants signed up to its service and
has reported rent worth over £150 million since it launched four years ago.

It also recently received £500,000 in funding from an HM Treasury
tech fund after the government signalled its desire to see a more level playing
field in the housing market.

While homeowners have their mortgage repayments recognised, until
recently renters have not, an imbalance the previous and current Conservative
government have wanted to correct.

Huge lift

“The inclusion of rental
data in credit assessments is a huge lift to improve financial inclusion and
fairer access to the right financial products,” says Janice Rudd, Data Director
at Equifax.

“This data insight provides
lenders with a much more reflective picture of the amount renters can afford to
borrow.

“Renters who make full and
timely monthly payments should see a significant benefit in proving their
ability to repay a commitment, just like mortgage payers. We’re pleased to work
with CreditLadder to unlock better financial outcomes for consumers and lenders
alike.”

Sheraz Dar, CEO at CreditLadder.co.uk,
say: “CreditLadder’s mission is to deliver financial fairness to the UK’s
millions of tenants, helping them access the credit they need, for example when
they want to buy their own home.”

The other online service
offering a similar rent reporting service is Canopy, while Homelet recently
integrated the Open Banking capabilities of Movem into its referencing service.

View Full Article: Credit checking giant backs platform hoping to disrupt traditional tenant referencing