MSE News: Rent payments to go on your credit file

Thrugelmir

squeeks wrote: »

If you can't save a deposit, your credit rating isn't going to make any difference to a mortgage lenders decision to lend money, unless 100 - 125% mortgages are back and I didn't notice.

I didn't mean no deposit. Perhaps low deposit would be better.

Better to look on the positive benefits of change than the negative.

Those with the most to lose have something to hide. As poor credit records will mean less options when renting.

Its not just banks that are going through a fundamental mindset change, its consumers too.

squeeks

Thrugelmir wrote: »

Better to look on the positive benefits of change than the negative

From a tenants perspective I really can't see any benefit. There are plenty of items you have on a credit file from running a household as it is, does rent - which doesn't have a credit agreement really have to be included as well?

I can see that LL would like the idea. In theory it gives them more of a chance of spotting problem tenants.

For really bad tenants this will be no issue at all, they will just give the LL an ultimatum, tell the credit agency you made a mistake so I CAN move or I'll wreck the place and it'll take you the best part of a year to get me out costing you a fortune in fees, lost revenue and fixing the place up - how much are radiators worth to the scrappy again? And it was getting cold, and the doors were the only firewood we could find... We also felt like redecorating, we found this really cool black paint, we were bored of magnolia...

This change will just catch out the hapless, naive and unfortunate. While making more money for the credit agencies as they have access to more data about you. *puts on tin foil privacy hat*

Jojo_the_Tightfisted

b00geyman wrote: »

...But it is flawed, got to assume that those people in reciept of housing benefit are going to be hammered when the local councils take their usual 8 weeks to get going, and then where are they going to go when the lease runs out........yep the councils homelessness list, costing us the taxpayers even more money as the coucncils have a statutory duty to put them somewhere......and they use private landlords....ermmmmmm....

8 weeks? Try 4 months. Mainly because when they opened up the new claim and closed the old one down, they actually closed the new one. Took 16 weeks of being told exactly what was wrong (plus eviction proceedings commencing) for someone to actually go 'Oh yeah.' And then a further month to actually start making part payments towards the outstanding, never mind the current rent.

One screw up, the person is homeless, their credit file is wrecked so they can't rent somewhere else - and the council regard them as intentionally homeless. Cue kids in the care system, parents sleeping on the street.


But Experian gets their money from the rental checks, so everything's allright in the world, because it's really all about helping vulnerable people to get credit cards.

Road_Hog

As a landlord, I think this is an awful idea.

Sometimes my tenants are a bit late (a couple of weeks), they're on benefits, but as long as they pay within the month, then it is no big deal.

There is no credit agreement, just a business transaction. It is no business of the credit agencies. If they don't pay, then I (through the lettings agency) would ask them to leave.

No reference or a bad reference would be the result. But they've not borrowed any money from me and I wouldn't get involved with credit agencies. Jeez, life's hard enough without these people poking their noses in.

chattychappy

I think it's a good thing.

I have a friend who is a LL. Some tenants seem to make an industry of not paying and it's a real hassle to get them out, even under the so-called "accelerated procedure". References are pretty useless.

He has no problem with "can't payers" and indeed most of his tenants are fine. It's the won't payers who are the problem. They seem to know their rights very well and exploit to the full. By the time he can get them out, he is left with arrears that will never be recovered.

Not surprising there are so many dodgy landlords out there - he's had enough and is getting out. No doubt a less decent bloke will fill the gap.

Slinky

ruggedtoast wrote: »

I will be avoiding Experian in future and I recommend anyone else who has an issue with it does the same.

How?.......

ruggedtoast

I had no trouble getting a mortgage after renting as my credit rating was 999/1000. This was from having a mobile phone contract and two credit cards I barely used and paid off in full when I did.

Can someone explain how this is "helping tenants gain more credit options"? Because all I can see are upsides for experian, agents,. and landlords and downsides for tenants.

edinburgher

There don't seem to be many of us, but I think this is a really good idea! Granted for people with convoluted circumstances; deadbeat exes who they're financially associated with or students this might throw up some complications.

But for tens of thousands of others it will provide a shot in the arm to the credit score that they won't be establishing as a tenant in quite the same way they would as a homeowner.

I've rented for 11 years (get the keys for my first home today) and this would have been a great help in getting a mortgage.

I've shared with friends and partners and never been late with or missed a payment in this time - my credit should be glowing!

MissMoneypenny

Even more reasons for tenants to ensure they don't sign agreements that makes them responsible for the other tenants rent, if they fail to pay.

LHA payments that are late, could open up a few claims against councils too I assume?

Thinking on, hasn't Experian already set up a few schemes recently to find the landlords without consent to let; the Moving Alert for lenders and it also runs National Hunter for lenders, too. Anyone want to take bets that they don't somehow link this new scheme of late payments to landlords too, in the not too distant future?

HAMISH_MCTAVISH

chattychappy wrote: »

Some tenants seem to make an industry of not paying and it's a real hassle to get them out, even under the so-called "accelerated procedure". References are pretty useless.

He has no problem with "can't payers" and indeed most of his tenants are fine. It's the won't payers who are the problem. They seem to know their rights very well and exploit to the full.

Absolutely correct.

All landlords should sign up to the scheme.