By Rebecca Choules
Millions of people who live in privately rented accommodation who have a good repayment history will now be able to use this to boost their credit score.
This will enable many first time buyers obtain lower-cost mortgages, and other financial products.
For many consumers, renting is now considered a lifestyle choice, as low interest rates have made saving a large enough deposit to secure a mortgage difficult. Even after the deposit has been raised, many are priced out of the market due to a lack of credit history, which results in expensive mortgages.
However, this could be set to change after Experian, the global information services company, launches its new Rental Exchange service. The new service will offer a safe and secure way to include a tenant’s rental payment history, with their permission, into their credit-history.
Paul Vescovi, UK & Ireland Managing Director, Experian Credit Services said: “With several million people living in privately rented accommodation, a significant percentage of the population could be missing out on mainstream, low-cost credit because lenders do not currently have a comprehensive picture of their financial track record. The Rental Exchange will strengthen people’s credit histories, helping them to access a wider range of credit deals.”
Source : telegraph