MSE News: Do you rent? Here's a new trick to boost your credit rating

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Millions of private tenants can boost their credit rating by opting in to a scheme that records if they pay rent on time...

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'Do you rent? Here's a new trick to boost your credit rating'

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Guest101

presumably then those in bad circumstances would have a negative affect on their credit rating?

marksoton

My question would be how do credit ladder make the money to a) administer the scheme and b) make a profit.

They're not doing it out of the kindness of their hearts...

Guest101

marksoton wrote: »

My question would be how do credit ladder make the money to a) administer the scheme and b) make a profit.

They're not doing it out of the kindness of their hearts...

Presumably future lenders would be paying via micro-transactions for the information.


In particular mortgage lenders (or to be cynical the borrower by virtue of their fees)

squeeks

The tenant in England typically foots the bill for the credit check at a significant markup. If you give this data to the company, you'll only end up paying for them to retrieve it again. The industry is a complete farce.

I should also point out that mortgages you get all sorts of perks which aren't available for tenants, such as payment holidays, switching mortgage vendor for better deals (imagine tenants being able to switch letting agent, like you can with energy suppliers!) the list goes on. The rental sector (and letting agents) needs a real shake up in this country.

Guest101

squeeks wrote: »

The tenant in England typically foots the bill for the credit check at a significant markup. If you give this data to the company, you'll only end up paying for them to retrieve it again. The industry is a complete farce.

Assuming they even bother to check... I suspect a number just pocket the fee

20aday

I rent a bedroom from two friends I've known for the best part of a decade.

Something like this (for me) could potentially be ideal.

Miss_Samantha

Experian tried this a couple of years back, and now is trying again with a new spin on it.
IMHO, this is even worse than last time because now rent must be paid to a third party.

If you pay your bills on time, have the required income, and perhaps have a credit card then you will get a mortgage.

Therefore, I really don't see the actual benefit as joining this 'service' is only risking bad marks.

mjm3346

Cannot see how this benefits the Landlord, it just adds a potential risk for late payments with the extra layer between them and the tenant.


This bit is presumably a joke?

Should anything unexpected arise involving the processing of a tenant's payment and the issue was solely Credit Ladder's fault then the firm says it will judge whether to issue refunds on a "case-by-case basis". It says if the mistake is its fault it won't record a late payment on your credit file

If it's their fault there is a mess up penalties should be automatic, not left for them to decide. I suppose it's good to know they won't record something that is their fault :rotfl:

thesaint

squeeks wrote: »

I should also point out that mortgages you get all sorts of perks which aren't available for tenants, such as payment holidays,

Tenants regularly get interest and fee free payment holidays.

Miss_Samantha wrote: »

Therefore, I really don't see the actual benefit as joining this 'service' is only risking bad marks.

I could certainly see the benefit of me a a landlord in the future.

If a tenant can show me they have paid their rent on time for the last "x" amount of years, then that is a start.

This benefits the prospective tenant, as all things being equal, they would get the property over another applicant.

Guest101

20aday wrote: »

I rent a bedroom from two friends I've known for the best part of a decade.

Something like this (for me) could potentially be ideal.

I'm not sure it would apply in your situation, as you would be a lodger - but worth checking