Credit Ladder

Megzzie · 26 March 2018 at 6:34PM

Hi just wandering if anyone has used credit ladder to help build their credit rating by paying rent? They are wanting my bank login details to access bank statements, just want to make sure it’s safe before giving any details out.

glentoran99 · 26 March 2018 at 6:36PM

Megzzie wrote: »

Hi just wandering if anyone has used credit ladder to help build their credit rating by paying rent? They are wanting my bank login details to access bank statements, just want to make sure it!!!8217;s safe before giving any details out.

run away!! You should not give bank login details to anyone!!

Megzzie · 26 March 2018 at 7:04PM

That’s what I was thinking! But as it was off this site I thought it was legit until it asked for all that info

DCFC79 · 26 March 2018 at 7:17PM

Megzzie wrote: »

That’s what I was thinking! But as it was off this site I thought it was legit until it asked for all that info

Where was it mentioned on MSE ?

I personnally wouldn't trust anyone else with my bank login details.

GM1880 · 26 March 2018 at 7:25PM

I use Credit Ladder, though still not showing on my credit file. They never asked for those details from me, just a direct debit.

Dobbibill · 26 March 2018 at 10:48PM

It's mentioned on the MSE site here
https://www.moneysavingexpert.com/mortgages/rental-exchange-scheme

From what I can see there are more options to pay via SO.
It's only asking for your bank login details as part of 'open banking' to read your statement.

Opt for the SO payment if you are going to use them.

Shakin_Steve · 27 March 2018 at 7:01AM

I really can't see this having much of an effect on any lenders decision. It's just more of your personal information 'out there'.
Personally, if I rented, I would like to be 100% sure that my landlord received my rent on time, every time. I don't want to hear about this months rent being a bit late due to admin errors or system glitches. How do these people make their money? Is there a fee? Why would any landlord/ agent sign up to it?
Yes....I'm a cynic....but, IMO, you've got to be.

forgotmyname · 27 March 2018 at 8:02AM

They say no fee and Experian do not pay them, so how do they survive?

"propped up by private cash" How long will that last before charges come in. But as they are part of Make Ur Move, maybe your going to be added to some advertising list?

You never give anyone your bank login details.

nic_c · 27 March 2018 at 9:38AM

If they are asking for login details, I assume they are not yet Open Banking compliant. The reason that they just want your statements sounds fishy too. If you are paying rent via them, why do they need to have access to bank statements? You could provide them if needs be. Sounds like they are data scraping, finding your spending habits etc to target adverts etc.

Maybe that is their funding model, to be able to sell intimate knowledge of your financial history.
- they make monetary gains and build up an increasing asset
- you get a tenuous promise of some increase in a fictitious score, possible tension, stress and reduced security of accomodation (how quick do they pay the landlord, what guarantees, etc will your landlord look less favourably on you and less willing to renew a tenancy), possible increase in the amount of spam and targeted adverts, less financial security (if your login details get leaked if their systems get hacked, will your bank refund you?), etc ...

Personally I would run away. Even if you look at the core goal, improving credit file, you get the same effect of opening a subprime credit card, using it to buy something once a month and paying it off. You could argue its even less effective than a subprime card, since with the latter you may have your limit increase over time and show responsibility to use available credit.

sargeantsalt · 27 March 2018 at 4:28PM

Sometimes landlords don't keep to their obligations. There are all sorts of horror stories about dangereous substandard and neglected housing as well as unfair rent hikes. For example, you can refuse to pay a rent increase if it is unreasonable and you can appeal it. But, if you pay just once, you lose your right of appeal. You can also withhold rent if your landlord fails to carry out certain repairs.

If you sign up to 'credit ladder' and ever get into a dispute, you will not be able to withhold your rent because your landlord will punish your credit score.

In any case, rent paid in advance is not 'credit' so it is wrong to go on your credit file.

There is an obvious solutiuon which makes 'credit ladder' totally pointless:

Take out a loan from your bank for your year's rent, then pay the rent with the loan money and repay they loan in the agreed installments. This is real 'credit' and will boost your credit score but, you can still hold back on rent and keep all your rights if there is a dispute. Just make sure you pay the loan on time.

dmcchesney5725 · 28 March 2018 at 11:21AM

I have been with Credit ladder for over 18 months after reading about it on here, It seemed like a great idea and i was hoping within 12 months it would show up and might effect my score or at least show up .

Well after 12 months every month i was told by credit ladder it would go live soon on experian and also when it did all back payment s would show up .
Well 6 months later i now get told it is live only when i joined experian for £14.99 for my report nothing is there.
After contacting Credit ladder i am told on sorry it is only on a statutory report available for £2 and not on the main report.
I spoke at length to experian who explained it was only on that report and also it would only show 12 months of reporting not my file of payments made to credit ladder and this was a trial and will go live later in the year maybe half way though it also had made no difference to my report at all.

I pointed out to experian that their website quite clearly shows on the main site that . " THE INFORMATION IN YOUR £2 STATUTORY CREDIT REPORT IS THE SAME INFORMATION THAT IS SHOWN IN YOUR EXPERIAN CREDIT REPORT AVAILABLE AS PART OF EXPERIAN CREDIT REPORT"
It has been raised by experian that this is misleading and wrong on their part and was given a full refund of my joining fee to cover my complaint and they will be looking into this right away.

I am hoping i can past this information on to MSE so they can look into this but i can say at this time Credit ladder has not helped at this present time and seems like they are more interested in selling you a add on service for free tickets and a coffee.

D Mcchesney

Credit Ladder

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