Improve credit score - renting

samtommo

I am going to be renting a house off a relative for a set figure each month - is there anyway this could improve my credit rating and if so, how do i go about it?

If this is the wrong place to ask then please can you direct my to the appropriate bit of the forum!!

Many thanks:beer:

InsideInsurance

Improve it from what? What is your current home status?

Renting wont show on your credit history and so it comes down purely to a lenders preference. Generally they prefer home owners, second is private renters and third is council (or equiv) renters.

Where "living with parents" fits is more debatable - some would have it fairly high in the list because of no outgoings for the home so more of your income is disposable but at the same time it generally isnt a long term situation and your most likely to switch to renting after

BASFORDLAD

InsideInsurance wrote: »

Improve it from what? What is your current home status?

Renting wont show on your credit history and so it comes down purely to a lenders preference. Generally they prefer home owners, second is private renters and third is council (or equiv) renters.

Where "living with parents" fits is more debatable - some would have it fairly high in the list because of no outgoings for the home so more of your income is disposable but at the same time it generally isnt a long term situation and your most likely to switch to renting after

Not quite true.

Some larger landlords will in the future( on agreement with tennants) will be able to update experian with details of rent payment history.

Was on the news the other week

jonesMUFCforever

But OP says he is renting off a relative so unlikely to be a big landlord.
OP you can improve your credit rating by paying all your bills on time.

Buzby

I don't see your rental arrangement doing anything. A mortgage certainly will, but private arrangements will never be shown.

InsideInsurance

But your rating, from a lenders perspective, is a combination of the credit history from the CRA and personal circumstances questions and so it may well impact their rating subject to what their residential status was prior to moving to a private rented accomodation

samtommo

Thanks for the response. It was just out of interest really as if i could have improved it then great, if not then no problem as i am going to be renting the property regardless. Many thanks all

BugsyBrowne

InsideInsurance wrote: »

But your rating, from a lenders perspective, is a combination of the credit history from the CRA and personal circumstances questions and so it may well impact their rating subject to what their residential status was prior to moving to a private rented accomodation

At the end of the day lenders take in all sorts of info when acessing credit applications so its no good owning your own home if you've no credit history or you're a bad payer etc.

It works both ways the same as they would rather lend to private renter who never miss a payment rather then lend to mr homeowner who's credit report is trashed through missed payments.

InsideInsurance

BugsyBrowne wrote: »

At the end of the day lenders take in all sorts of info when acessing credit applications so its no good owning your own home if you've no credit history or you're a bad payer etc.

Absolutely, the rating is a fairly complex algorithm (and they tend to be getting more complex) which considers all factors and therefore when you talk about impact of a single consideration you have to assume all others remain constant.

Added to that is the fact almost all lenders have their own algorithm which reflect their preferences/ experiences/ target market etc and you increasingly can only talk in broad brushstrokes