So, CreditLadder, what is it and what does it do ?
Well, when you make payments on mortgages, loans and credit cards, or if you pay monthly with a mobile phone contract, all of these payments are recorded and reported back to Credit Reference agencies. These are then recorded against your Credit file to help these agencies generate your Credit Score.
Generally, if you pay your bills on time and don’t miss payments, then you will have a healthy Credit Score and this will help you gain other forms of credit, such as a mortgage or loans or boost your chances of better rates on loans, credit cards and so on.
Unfortunately, Rental payments are not generally reported back to credit reference agencies and whilst you may never miss a rent payment, this won’t be used by them to improve your credit scoring.
CreditLadder is a way of allowing your Rental payments to be reported back to the UK’s largest credit reference agencies. This data will then be used to help improve your credit score and it can also help improve your rating as someone who is reliable to rent to.
This great product could help you secure your first mortgage or help provide an invaluable record of your rental payments so you can secure your next rental property.
By verifying your rental payments, you can:
- Improve your credit score and history
- Help repair the financial impact of Covid-19
- Increase your value as a reliable renter
- Boost your chances of approval for better rates on loans, credit cards, and mortgages
Why report your rental payments to credit reference agencies ?
- Lenders or companies using credit checks use either Experian, Equifax, Transunion or all three. Reporting to only one may not provide the benefit you require.
- As your letting agency offers an extra layer of verification, we are able to offer you this ‘dual rent reporting’ service at a better price than anywhere else.
- If you have experienced financial difficulties, only the credit agency involved with the shortcoming may have reduced your credit history or score, reporting to both helps to repair the right one.