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

Millions of private tenants can boost their credit rating by opting in to a scheme that records if they pay rent on time...
Read the full story:
'Do you rent? Here's a new trick to boost your credit rating'
OfficialStamp.gif
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
«13

Replies

  • Guest101Guest101
    15.8K Posts
    ✭✭✭✭✭
    presumably then those in bad circumstances would have a negative affect on their credit rating?
  • 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...
  • Guest101Guest101
    15.8K Posts
    ✭✭✭✭✭
    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)
  • edited 11 April 2016 at 11:32AM
    squeekssqueeks Forumite
    309 Posts
    edited 11 April 2016 at 11:32AM
    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.
  • Guest101Guest101
    15.8K Posts
    ✭✭✭✭✭
    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 :)
  • 20aday20aday Forumite
    2.6K Posts
    Eighth Anniversary 1,000 Posts Combo Breaker PPI Party Pooper
    ✭✭✭✭
    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.
    It's not your credit score that counts, it's your credit history. Any replies are my own personal opinion and not a representation of my employer.
  • edited 11 April 2016 at 12:08PM
    Miss_SamanthaMiss_Samantha Forumite
    1.2K Posts
    edited 11 April 2016 at 12:08PM
    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.
  • mjm3346mjm3346 Forumite
    45K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    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:
  • edited 11 April 2016 at 12:44PM
    thesaintthesaint Forumite
    4.3K Posts
    edited 11 April 2016 at 12:44PM
    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.
    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.
    Well life is harsh, hug me don't reject me.
  • Guest101Guest101
    15.8K Posts
    ✭✭✭✭✭
    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
This discussion has been closed.
Latest News and Guides

Cyber Monday deals

Here’s what the Deals Team have spotted

MSE Deal

How to find cheap PCR tests

The rule change comes into force tomorrow

MSE Guide