Housing rental payments are not usually included in a credit report but that option is now available through an online platform that enables tenants to help build their credit score.
CreditLadder.co.uk is the first tenant credit rating improvement platform in the UK to integrate the new Open Banking rules into both its business model and tech.
Open Banking was introduced on 13 January 2018 and allows third parties to access a person’s current account details, as long as the individual has given permission.
For the first time in the UK, tenants can sign up and #makerentcount by authorising CreditLadder to read their bank account transactions via Open Banking compliant application programming interfaces (APIs).
By using a simple three-step sign-up process to authorise payment tracking, tenants can help improve their credit scores. CreditLadder, which is a partner of credit reference agency Experian, therefore enables tenants to seamlessly report rental payments.
The benefit for tenants is that by paying their rent on time, it helps to strengthen their credit history. This, in turn, can help them to access more affordable mortgages and other types of credit including cards, loans and mobile phone contracts at more attractive interest rates.
The CreditLadder rent reporting service is free. But it also offers discounts on high street shopping, cinema and restaurants, mobile phone insurance plus a free monthly movie and coffee every month to those who sign up to one of their two paid plans.
Currently there are nine banks integrating the new Open Banking rules into their IT systems: Barclays, HSBC, Lloyds Bank, Halifax, Natwest, RBS, Santander, Nationwide, The Co-Operative Bank, First Direct and TSB.
“In the past it has been necessary for both tenants and landlords to complete permission forms to enable tenants to register their rental payments with a credit reference agency,” says Sheraz Dar, CEO of CreditLadder.co.uk.
“But now a tenant can instead log onto CreditLadder, connect with their bank and permit us to read their statement. This then allows rent reporting to the credit agencies without CreditLadder handling the rent payments.”
Sheraz Dar has worked at and invested in many of the UK’s digital businesses including PrimeLocation, Quidco, eMoov and OpenRent; the latter being the UK’s biggest letting agent by volume.
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