Data about your rent payments is sent to Experian and will show on your credit history. On time payments will improve your credit history, whilst late payments will have a negative effect. Your credit history will be checked by lenders to asses your suitability for a loan, or by housing providers to asses your suitability as a tenant.
If you want to buy something on credit, then it helps considerably if you have a good credit history (a track record of paying off credit agreements). Companies use credit history to assess your creditworthiness before making a lending decision. Having a good credit history also helps to provide proof of your identity, and where you live and have lived before. This can help you access a range of goods and services online, including getting the best deals on mobile phones, TV and broadband packages and car insurance.
Homeowners with a mortgage have an advantage as their mortgage payment history can count towards their credit history and we believe that your rent payment history should be used in the same way.
Rent North East has teamed up with Experian to take part in the Rental Exchange. The Rental Exchange is a way to strengthen your credit report without you needing to take on new credit. The scheme enables us to share details about the rent you pay with Experian on a monthly basis. This is then included in your credit report, meaning you will then be recognised for paying your rent on time.
Not only will we be able to work with you more closely to manage your existing tenancy agreement, your track record as a tenant will enable Experian to use the information supplied to them in the future to assist other landlords and organisations to:
assess and manage any new tenancy agreements you may enter into;
assess your financial standing to provide you with suitable products and services;
manage any accounts that you may already hold, for example reviewing suitable products or
adjusting your current product in light of your current circumstances;
contact you in relation to any accounts you may have and recovering debts that you may
verify your identity and address to help them make decisions about services they offer;
help prevent crime, fraud and money laundering.
We, and Experian, will ensure that your information is treated in accordance with the Data Protection Act so you can have peace of mind that it will be kept secure and confidential and your information will not be used for marketing purposes.
If you’d like further information about the Rental Exchange you can visit www.experian.co.uk/rental-exchange.