In a significant development, the longstanding desire to include rental payments in credit ratings has advanced with CreditLadder, the UK’s leading rent reporting platform, joining forces with Digital ID Connect, a digital service.
Having now reported a staggering £1 billion in rent payments, CreditLadder enables users of its app to report their rental payments to the four major credit reference agencies. This move positions these payments on credit files, allowing lenders to gauge the consistency of on-time rent payments. Similar to homeowners benefiting from punctual mortgage payments, tenants can witness an enhancement in their credit scores through these timely payments.
To access this service, renters can register with CreditLadder through any of the Digital ID apps within the Digital ID Connect network. The process involves securely providing personal details and verifying age and identity. Subsequently, users furnish information about their bank accounts, rent amounts, and tenancy details, allowing CreditLadder to automatically capture and monitor rental payments through Open Banking.
John Abbott, Chief Commercial Officer at Yoti, expressed enthusiasm about the collaboration, stating, “The vision for Digital ID Connect is to provide faster and more secure ways for people to share their information with valued services that need identity or age verification. I am delighted to be working with CreditLadder so that the tens of thousands of people installing our app each month have extended partnerships available at their fingertips.”
Sheraz Dar, CEO of CreditLadder, emphasized the positive impact of this collaboration on tenants, stating, “By enabling Digital ID Connect users to report their rent payments, we move another step closer to helping every single tenant improve their access to credit and accomplish their financial goals. With lenders in the UK factoring in rent payments when making credit decisions, including beginning to consider on-time rent payments when looking to assess mortgage applications, it’s yet another reason why reporting rental payments is so important.”