This is a great initiative that can only help to improve the financial awareness and responsibility of consumers who now will be recognised and rewarded for payment adherence with rent payments. It also helps in avoiding the temptation to not pay rent without an immediate consequence in preference of other non priority debts because of confusion about what should come top of the list when income doesn’t match outgoings. The more that people are educated about good credit management behaviours in the good times and the bad, the better off they will be and making rent matter in this way only helps spread that message.
Credit reference agency Experian will now show rental payment information in the credit files of 1.2 million UK tenants. As lenders get access to this information too, in theory it could make it easier for those who pay their rent on time to get onto the property ladder or be accepted for other credit products. More than 150 social housing providers, local authorities and letting agents are reporting data into the Rental Exchange scheme with more expected to come on board – though you can opt to do it yourself now if yours hasn't signed up yet.
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