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

edited 30 November -1 at 1:00AM in Credit File & Ratings
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Former_MSE_Sarah_GFormer_MSE_Sarah_G Former MSE
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edited 30 November -1 at 1:00AM in Credit File & Ratings
Hundreds of thousands of tenants could see their credit score boosted as their rental payment information will now be included on their credit report.
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'Boost for tenants as rental payment info to appear on credit report'

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Replies

  • moleratmolerat Forumite
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    But for the other thousands of tenants ..................... :o
  • [Deleted User][Deleted User] Forumite
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    MoneySaving Newbie
    Yay - a boost of an imaginary number!
  • [Deleted User][Deleted User]
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    Ninth Anniversary 1,000 Posts Name Dropper
    MoneySaving Newbie
    I think this will be great for Landlords so they can weed out unreliable tenants.
  • tacpot12tacpot12 Forumite
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    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.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • takmantakman
    3.9K Posts
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    This article needs to be reviewed urgently because it contains a lot of false and misleading information:
    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.
  • edited 31 October 2018 at 11:14PM
    Scotland2021Scotland2021 Forumite
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    edited 31 October 2018 at 11:14PM
    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
    Used to work in Underwriting. Only the lender can give a definitive answer to queries
  • boo_starboo_star Forumite
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    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.
  • 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.
    Read the latest MSE News
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  • [Deleted User][Deleted User] Forumite
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    MoneySaving Newbie
    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
  • mrnomoneybagsmrnomoneybags Forumite
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    Is there a list of housing associations who have signed up for this?
This discussion has been closed.
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