Agency experiments with adding tenant rent payments to credit scores

A lettings agency on Merseyside is one of the first in the UK to take part of an experiment which could see thousands of tenants improving their credit scores.

Launched by global information services company Experian, a scheme known as the Rental Exchange helps private tenants strengthen their credit histories simply by Experian recording their rental payments. This is the same principle that exists already for mortgage payments.

One of the first agents in the UK to pioneer the scheme is Karl Tatler Lettings, with properties across Wirral and Liverpool.

“The initiative is a way to strengthen your credit report, without needing to take on new credit or debt, just by paying your rent on time each month. People should not be at a financial disadvantage for renting and deserve equal access to services many of us frequently use” says Karl Tatler’s head of lettings, Dave Seed.

“What many people don’t realise is that you need a good credit rating to access mainstream financial services from bank accounts, credit cards, personal loans and mortgages, to mobile phone and utilities contracts. In the past, building a good credit rating has been easier for homeowners than for tenants, because mortgage payments are factored in” says Experian spokesman Mark Goodfellow.