Boost for tenants as rental payment info to appear on credit report

Former_MSE_Sarah_G

Hundreds of thousands of tenants could see their credit score boosted as their rental payment information will now be included on their credit report.

Read the full story:
'Boost for tenants as rental payment info to appear on credit report'

Click reply below to discuss. If you haven’t already, join the forum to reply.

molerat

But for the other thousands of tenants .....................

[Deleted User]

Yay - a boost of an imaginary number!

[Deleted User]

I think this will be great for Landlords so they can weed out unreliable tenants.

tacpot12

This does seem to be a step forward for both landlords and good tenants. Let's hope that bad tenants are able to repair their credit history in a way that is fair to themselves and the landlords they owe money to.

takman

This article needs to be reviewed urgently because it contains a lot of false and misleading information:

MSE_Sarah_G wrote:

What's the benefit of joining the scheme and why is my credit score important?
Making your payments on time (which 98% of private tenants do, according to Experian) could see your credit score improve, therefore making it easier to prove your identity and apply for credit products.

Your credit score appears on your credit file, which you should think of as your financial CV. It gives potential lenders an insight into your spending history, allowing them to make an informed decision as to whether they want to take you on as a borrower.

While it's not all about credit score, as your affordability is also taken into account by a lender, building your credit history through your rental payments will make you more attractive to a lender. And as mortgage payments could end up being more affordable than your current rent, you could see yourself on the property ladder far sooner.

This is completely false your credit score DOES NOT appear on your credit file and it is not used by lenders when making credit decisions.

They only use the information contained within your report when making a decision.

[Deleted User]

I've had to withold rent to get a letting agency to finally fix a broken shower (this was after numerous calls and emails). It was promptly fixed and I paid up

With this system, I couldn't dare withold rent as it'd be classed as a missed payment!

Also how would it work if the landlord proposes a ridiculously high rent increase - I believe tenants have a right to get it independently reviewed? They could blackmail you with the "bad credit" ploy!

Would be interesting to see how lenders do implement it and if it has any impact. Sadly I doubt anyone will ever give a concrete answer.

I think a 'default' (evicted status) on these needs to be carefully managed too - it's not the same as a proper default. Similar to how lenders treat Comms defaults with a bucket full of salt as everyone knows comms/mail order companies like slapping missed payments and defaults on people

boo_star

Somerset_La_La_La wrote: »

I've had to withold rent to get a letting agency to finally fix a broken shower (this was after numerous calls and emails). It was promptly fixed and I paid up

With this system, I couldn't dare withold rent as it'd be classed as a missed payment!

Also how would it work if the landlord proposes a ridiculously high rent increase - I believe tenants have a right to get it independently reviewed? They could blackmail you with the "bad credit" ploy!

Would be interesting to see how lenders do implement it and if it has any impact. Sadly I doubt anyone will ever give a concrete answer.

I think a 'default' (evicted status) on these needs to be carefully managed too - it's not the same as a proper default. Similar to how lenders treat Comms defaults with a bucket full of salt as everyone knows comms/mail order companies like slapping missed payments and defaults on people

Strictly speaking you should never withhold rent, non-payment is grounds for eviction. You should take the landlord to court to get them to perform the repairs.

That being said, withholding rent does often work, even if it's not strictly following procedure.

Former_MSE_Sarah_G

You're right. We've updated the news story to reflect the fact that lenders don't see the score you see and instead just the information in your credit file.

[Deleted User]

MSE_Sarah_G wrote: »

You're right. We've updated the news story to reflect the fact that lenders don't see the score you see and instead just the information in your credit file.

Can you also remove any reference to people seeing their scores boosted as well then - since this is also irrelevant

mrnomoneybags

Is there a list of housing associations who have signed up for this?