CreditLadder introduces fees for renters reporting payments to two credit reference agencies

Former_MSE_Naomi

Renters who use CreditLadder to build their credit rating by sending information about their rental payments to credit reference agencies will now need to pay a fee of up to £8/mth if they want their payments to be reported to both Experian and Equifax...

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'CreditLadder introduces fees for renters reporting payments to two credit reference agencies'

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bradders1983

Crikey, I didnt even realise this was a thing.

Shakin_Steve

You'd have to be pretty desperate.

bradders1983

Its utterly ludicrous. "Rent" is not credit.  What next? Reporting that you have been and done the big shop every week?

D3xt3r5L4b

bradders1983 said:

Its utterly ludicrous. "Rent" is not credit.  What next? Reporting that you have been and done the big shop every week?

It’s not, no.
But renters “complained” that people with a mortgage get green ticks every month for paying their mortgage but renters get nothing to show they pay their rent in a timely manner. 

bradders1983

Yes, because its not credit. An absurd moan to have.

Thrugelmir

It's a good indication of personal financial management though.  Late payment is viewed as a game by many. 

PRAISETHESUN

I think the logic is that any information you can provide to the CRAs that might present you to lenders you in a better light is better than none, particularly since this seems to be marketed as a "credit (re)building" service. It works both ways though - missing rent payments will hurt your credit history - so you still need to be responsible enough to make sure your rent is paid on time.

Not that you need to pay for these sort of services. A well-managed CC or two will do exactly the same job for no cost.

Thrugelmir

PRAISETHESUN said:

 A well-managed CC or two will do exactly the same job for no cost.

CC is a revolving door. Regular payment in isolation has no value. 

jbrassy

In principle, I think being able to report rent payments to credit reference agencies is a good thing, but I wouldn't pay £8 for the privilege. To be honest, I'm not sure how much of a difference it would make when it comes to your credit score anyway.

There are easier and cheaper ways to improve your credit score. Firstly, making sure you're on the electoral roll will massively improve your chances of being accepted for credit. Another other easy way is having a mobile phone contract instead of PAYG. Also making sure you pay your utility bills on time (e.g. electricity, gas, water, broadband). Finally, I think getting a credit card and paying off in full every month will go a long way to showing lenders that you are responsible with credit. If you're on the electoral roll and have never missed a bill payment, there's no reason why you shouldn't be accepted for a Capital One or Aqua credit card. This page may be helpful:
https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/ 

I would advise using an eligibility checker before applying for a credit card just to make sure you've got a decent chance of getting the card.

D3xt3r5L4b

jbrassy said:

In principle, I think being able to report rent payments to credit reference agencies is a good thing, but I wouldn't pay £8 for the privilege. To be honest, I'm not sure how much of a difference it would make when it comes to your credit score anyway.

There are easier and cheaper ways to improve your credit score. Firstly, making sure you're on the electoral roll will massively improve your chances of being accepted for credit. Another other easy way is having a mobile phone contract instead of PAYG. Also making sure you pay your utility bills on time (e.g. electricity, gas, water, broadband). Finally, I think getting a credit card and paying off in full every month will go a long way to showing lenders that you are responsible with credit. If you're on the electoral roll and have never missed a bill payment, there's no reason why you shouldn't be accepted for a Capital One or Aqua credit card. This page may be helpful:
https://www.moneysavingexpert.com/credit-cards/bad-credit-credit-cards/ 

I would advise using an eligibility checker before applying for a credit card just to make sure you've got a decent chance of getting the card.

No one asked about applying for a credit card? Or made reference to the fictitious score?