Late rent payments could soon affect credit scores

Late rent payments could soon affect credit scores
Posted by Gary Cooper

Experian is recommending that landlords and letting agents encourage their tenants to pay rent through a website called Credit Ladder.

The credit referencing agency, which is used by banks, lenders and other financial organisations would then have visibility of who is – or isn’t – paying rent on time and use it to measure their credit score.

The system works with the tenant paying their rent directly to Credit Ladder, which would then pass the payment to the landlord and provide reports on payment history.

The system would mean that tenants can build up a ‘track record’ of good payments to help them with other rentals or possibly getting a mortgage in future. At present, mortgage lenders search credit history to identify good or bad debtors and decide whether a borrower is eligible.

The news could be good for landlords, too. As tenants may be less likely to miss tenant payments if they know it will have a detrimental effect on credit scores.

 

For financial guidance, mortgages and insurance, Outlet has a Money team who can help. Click here for more information.

If you're a landlord and you'd like to talk to us about property management, give us a call on 0203 811 3135 or click here for more info.

Loving all this?

We deliver.

Just enter your email.

Categories