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

Miss_Samantha

I note: "If your rental agreement changes, eg, the rent goes up, you must do some more work"
What will be the percentage of tenants who will mess this up?

thesaint wrote: »

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.

As a landlord it means that the money goes through a third party that you have absolutely no control over. Whilst the responsibility in case of issues would be the tenant's it would still be an extra layer and thus risk of delays, etc.

Currently landlords can get an idea that a prospective tenant is reliable by asking for references, etc.
It is not clear if landlords will have access to Experian's data, and how much it will cost.

On the other hand, this scheme requires the landlord's approval so they will have a say.

stator

Seems a bit odd that MSE are endorsing by advertising this product from a new/unknown provider.
What happens if they go bust, will they take your last rental payment with them? Is tenants money protected?
If they get overloaded and fail to process all their transactions you would risk losing a normal reference. If your LL/LA receives the rent 10 days late, they're not going to give you a reference saying rent was always paid on time, even if you paid it to a 3rd party on time and the 3rd party passed it on late.

thesaint

Miss_Samantha wrote: »

As a landlord it means that the money goes through a third party that you have absolutely no control over. Whilst the responsibility in case of issues would be the tenant's it would still be an extra layer and thus risk of delays, etc.

I think you mean "As a tenant".

Miss_Samantha wrote: »

Currently landlords can get an idea that a prospective tenant is reliable by asking for references, etc.

Yes, and this is a bit of extra information that explains quite a significant proportion of most tenants income.

Miss_Samantha wrote: »

It is not clear if landlords will have access to Experian's data, and how much it will cost.

Nothing is clear yet, but I think we have a base to start from. If people don't want it, it will fail.

As a landlord/letting agent definitely want something in place. The other credit reference agencies will watch with interest.

squeeks

thesaint wrote: »

Tenants regularly get interest and fee free payment holidays.

You must have very different tenant contracts in your part of the country. I don't think I have every seen a payment holiday clause.

I hadn't really considered it being an optional payment - more fool me, I guess I should have made better use of the credit facility.

Asakb

Guest101 wrote: »

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

The scheme is voluntary so it is a tenants choice if they wish to sign up.

Guest101

Asakb wrote: »

The scheme is voluntary so it is a tenants choice if they wish to sign up.

You've kind of missed my point.


Those who would benefit most from this are those with poor or no credit rating, which would be those people who struggle most day to day.


So it doesn't really work for the people that would actually want to use it....

Asakb

Guest101 wrote: »

You've kind of missed my point.


Those who would benefit most from this are those with poor or no credit rating, which would be those people who struggle most day to day.


So it doesn't really work for the people that would actually want to use it....

I've dealt with tens of thousands of tenants in my work and I have seen tenants with bad credit trying to make improvements to their credit file. I've observed that the majority regularly pay their rent on time and this is a priority for them. Having the option to obtain the benefit of an improved credit file is surely a good thing.

Guest101

Asakb wrote: »

I've dealt with tens of thousands of tenants in my work and I have seen tenants with bad credit trying to make improvements to their credit file. I've observed that the majority regularly pay their rent on time and this is a priority for them. Having the option to obtain the benefit of an improved credit file is surely a good thing.

1: I'm glad that you 'deal' with people rather than 'assist', or 'work with' them.
2: Most tenants don't stop paying rent until they really cant pay it, which is when their credit rating would be ruined, not improved.
3: I wonder how you knew they were trying to improve their credit rating, what kind of relationship did you have with these tenants?!

thesaint

squeeks wrote: »

You must have very different tenant contracts in your part of the country. I don't think I have every seen a payment holiday clause.

There's no clause. They are simply allowed to use the landlord as a free overdraft.

Guest101 wrote: »

1: I'm glad that you 'deal' with people rather than 'assist', or 'work with' them.

You're starting to sound a bit petty.

Guest101

thesaint wrote: »

There's no clause. They are simply allowed to use the landlord as a free overdraft.




You're starting to sound a bit petty.

It just seems to be a common attitude that tenants are to be 'dealt' with as if they are a problem