A scheme aimed at tackling financial and social exclusion amongst private renters has enjoyed a successful launch. CreditLadder’s unique programme, established in association with Experian and the Rental Exchange, helps boost a tenant’s credit rating by recording their rent payments on their credit file.
This means millions of tenants throughout the UK are now able to build their credit score, potentially allowing them access to financial products-including mortgages-on more favourable terms. This can eventually help the renter make the transition from tenant to homeowner.
CreditLadder’s Director, Asa Bentley, explained: “The Rental Exchange was conceived as an idea to help tenants in social housing. But at Credit Ladder, we wanted to bring the same benefits to the private rented sector. We are delighted to be the first to offer this service to private tenants, which will allow them to gain credit and potentially the ability to own their own home, just by renting.” Tenants not registered with Credit Ladder ( https://www.creditladder.co.uk/ ) receive no benefit from paying their rent on time, whereas mortgage payments are always recorded on credit files. It was this anomaly which prompted Credit Ladder to launch their free service.
“Tenants across the country are paying their rent on time, yet not building any more credit as a result,” Mr. Bentley explained in response to questions about the idea behind Credit Ladder. “The average tenant pays nearly half of their income in rent, but sees no benefit to their credit score or their future housing options. We thought it important that tenants be rewarded for their ability to pay their rent continuously and on time, just as they would with a mortgage.”
Since Credit Ladder was launched in March 2016 the response from both landlords and tenants has been overwhelming. It’s no surprise that the response has been so positive, considering 5.4 million households in the UK are paying rent instead of a mortgage. Of all of the private renters in the UK, 98% pay their rent on time, according to a recent study by Experian; a study which also showed that more than three quarters of those private renters want their rent payments to be visible on their credit scores. Credit Ladder’s newest service will not only help renters to become homeowners, but will help them to learn why it’s important to build a credit score.
Mr Bentley concluded by saying, “It is so exciting that many private renters from all around the UK have registered with us. The reaction to our service has been beyond our expectations, with the number of renters signing up to the scheme being 50% up on our pre-launch forecasts. We believe the response to the scheme shows there is a real appetite amongst renters to receive the same recognition for paying their rent on time as homeowners do for making their monthly mortgage payment.”
For further information on CreditLadder and their new addition to the Rent Exchange program that could help renters gain credit from their on time payments, readers are invited to contact Asa Bentley of CreditLadder by phone at +44 7889 726 703, or by email at: email@example.com
Credit Ladder Ltd is located at 17 in Cavendish Square London, W1G 0PH. The company can be contacted via phone at 0844 247 2480 or at their website: www.creditladder.co.uk
Company Name: Exploring this rock
Contact Person: Asa Bentley
Phone: 0844 247 2480
Address:17 Cavendish Square
Country: United Kingdom