Better Credit ScoreImproved creditworthiness
Several hundred thousand individuals who punctually paid their rents will profit from better credit ratings. The credit bureau Experian said it was now considering the payments of 1.2 million renters. An overwhelming 79% of these individuals will increase their creditworthiness and gain better credit facilities such as banking deposits, credit and mortgage facilities.
In the past year, almost 150,000 signatories have petitioned for better credit to renters who punctually paid their rents. Sanctioned " Around 150 suppliers of public dwellings have so far participated in the programme, the so-called rental exchange. Consequently, most of those currently affected rented from building societies or municipalities.
Anyone who rents from privately owned lessors through rental agencies may, however, request that their details of how to pay be sent to the website. However, anyone who has a bad track record of timely rental payments could negatively affect their creditworthiness - making it difficult or costly to get another one.
"Renters are paying a significant amount of cash every months for the rooftops above their head, so it is right to recognize these periodic installments similar to mortgages," said Clive Lawson, CEO of Experian Consumer Services. Commenting on the decision, Group CEO John Montague said: "Our goal is to create a level play ingfield for those who take out loans because we recognize that those in need are regularly penalized.
For those who have already registered for the program, you can view their credit report here or register for free with CreditLadder.
Trip to a better credit rating
If you are applied for any type of credit or debit cards, you will be credit scored, and creditworthiness will almost certainly be the major determinant in the chances of obtaining it. It is a frequent error that individuals often choose to verify their creditworthiness either when they have just been refused a credit or when they begin to think about the application.
At this point it's too slow, any changes to your credit can take up to 3 month to take effect from the point you make your changes, so it's really worth keeping up to date all the way - you never know when you might need credit.
Below is an info chart that contains some points and no indication of how to keep your credit score in top shape, and you can find more details on how to improve your credit score here.