New platform links tenant rental payments with Experian credit report

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New platform links tenant rental payments with Experian credit report

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By Lauren Howells

A new proptech platform, designed to link tenants’ rental payments to their Experian credit report, has been launched, property118 has reported.

Credit Builder designed to help tenants build a “validated rental record”

Credit Builder, which will also act as a full rent reporting service for both landlords and agents, has been devised to enable tenants to enhance their credit history, by collecting information about their rent payments, which they can show to either future landlords or to financial institutions, such as mortgage providers, should they want to purchase a property in the future.

Platform launches following petition 

The platform launches following a petition that attracted around 150,000 signatures, which called for rental payments to be taken into account when making a decision regarding whether someone is or is not able to afford a mortgage.

“…groundswell of opinion that tenants’ rental payments should count towards their credit report”

Founder and CEO of Credit Builder, Henry Yates, said: “The groundswell of opinion that tenants’ rental payments should count towards their credit report is beginning to drive real change in the industry.

Many renters are understandably keen for this to happen as they view it as good opportunity to enhance their credit score and improve their chances of being approved for a mortgage.” 

Credit Builder “fully integrated” with Experian Rental Exchange

New platform links tenant rental payments with Experian credit report

Credit Builder is reportedly “fully integrated” with Experian’s Rental Exchange. Those wanting to see their rental record should be able to do so via the Credit Builder app, where they will also be able to see instant loans and savings offers. Tenants should also be able to check their Experian credit report at the same time.

“…system will benefit millions of renters in the UK” 

Yates continued: “Credit Builder is a truly innovative platform that will ensure that Lord John Bird’s vision for a fairer rental market becomes a reality. The system will benefit millions of renters in the UK while also providing a valuable proposition for agents by enhancing the service they provide to tenants and landlords.”

Platform could help landlords by reducing rental arrears

The software will also enable agents to run a “comprehensive rent reporting service” and could benefit landlords by helping to reduce rental arrears.

118property.com reported that one estate agent who had already signed-up to Credit Builder had no rental arrears from the tenants who were using Credit Builder, in comparison to a 7% average for all tenants. 

Tenants will reportedly consent to the use of Credit Builder as a condition of their tenancy agreement.

After the details of the tenants are uploaded onto the platform, each rental payment after this point will then be reported to Experian.

By | 2018-05-30T09:56:19+00:00 January 19th, 2018|Business, Personal Finance|0 Comments

About the Author:

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After completing her law degree, Lauren decided to follow her passion for writing. She regularly contributes articles to CLNews on personal finance and general consumer topics.

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