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Once we have paid our credit cards on time, it will be noted on our credit information. However, when a lessee has paid his rental, there is no such confirmation. Originally designed for public sector renters, it is now also being opened to the residential rental sector. Once the system is fully operational, it will be the first time that rental payment will appear in UK credit reporting.
As Experian said, not only renters will profit - lessors will profit from the fact that their renters have an added stimulus to punctually paying their rental. RLA Political Affairs Manager David Smith said there would be a more detailed estimate of a potential tenant's credit and lease payments histories for a landlord.
Mietbörse is not the only system designed to assist tenants. The credit bureau, Equifax, said it was in the middle of uploading a number of new records, one of which was on rentals. Laura Hales, Director of Products for Europe, said, however, that this was a difficult area because of the scarcity of rentals.
The Equifax team also helped meet HM Treasury's 2 million pound challenges to finance new hire collection and distribution services. This works by collecting the user's lease payments via Open Banking and validating them with publically accessible information resources. That means that it is able to communicate the information with credit bureaus using state-of-the-art technology, which creates a lease statement that allows the tenant to demonstrate their credit rating.
"Focusing on the identification of periods in people's life when personally identifiable information is the keys to making better choices and then responding. "They need to use your information to help you comprehend how much you can afford, your credit status, the kind of mortgages and insurances that you need, etc.
"They also need to share a large amount of personally identifiable information with your accountant, lawyer, and others. RLA's David Smith stated that smaller lessors would be compelled to go through another level of red tape to be involved, as their rent would first be transferred to a "credit ladder" before being handed over to them.
Experian, however, did defend this statement that CreditLadder was one of several parties with whom it worked to turn the rental exchange into renters, lessors and brokers.