Experian to include rental payments in credit files
This scheme is certainly welcome for those looking to improve their credit rating especially if they are looking to move onto the property ladder in the future. However for those with missed and late rental payments now going to affect their credit rating it could have wider implications when these people begin to look for credit, it may also put increased pressure on people who are already struggling to keep up their rental payments.
Time will tell the true implications of this scheme, an optimistic view would be that if people know they have to pay their rent on time or it will affect their credit rating for the future it may work some way to reducing rental arrears.
Landlords and letting agents will have access to information about potential tenants, while Experian says it will strengthen people’s credit histories.
Tenants will have information about their rent payments included in their credit file under an initiative launched by one of the UK’s three credit reference agencies.
Experian’s Rental Exchange will allow landlords and letting agents to access information about potential tenants’ rent repayment history. For those that keep up with their rent it could make it easier for them to access mortgages and other forms of credit at better rates. However, tenants who miss a rent payment will find that their credit score falls and it will become more difficult to borrow money.
Read the full story at the guardian.co.uk
RentPro property management software can assist you with simple arrears management by alerting you as soon as a tenant falls into arrears, providing you with the ability to send a rent alert via text message to a tenant reminding them their rent is due.