Tenants can now count their rent payments toward their credit report.
CreditLadder has made a deal with credit reference agency Equifax.
The tool allows payments to be recorded on a credit report so lenders can consider them in affordability assessments.
It’s now available on Equifax, Experian and CallCredit.
What does this mean?
With more and more people renting, building up a credit score can be difficult without having a record of paying off debt. This often means that those who live within their means actually suffer when they eventually need to gain finance.
The new move allows people who pay their rent on time every month to display this on their credit score to show they can afford loans and mortgages. CreditLadder says its aim is to “deliver financial fairness to the UK’s millions of tenants”.