Tenants receive credit rating boost

Approved credit rating

Approved credit ratingIt's so important to maintain a strong credit rating, especially at a time when lending criteria are so strict.

The good news is that one of the world's major information services firms has decided to take into account people's rental payment records when assigning them a credit rating, in addition to any mortgage records they have.

So if you and your family are renting your accommdation but are looking to get on to the property ladder proper, the new changes could be of great use.

The new Rental Exchange service launched by Experian will ensure that information about people's rental payment history is included on their credit reports.

Although people will need to give their permission for the firm to use their rent payment records in this way, the scheme should give them the chance to improve their credit rating by demonstrating their ability to manage their money.

Commenting on the creation of the new initiative, Sian Williams, head of transact at the National Forum for Financial Inclusion, stated: "This is a very welcome development for many people living in private rented accommodation who until now have often found it difficult to build a credit history.

"If used well, this could be a very effective tool for allowing them to access a wider range of services at a more affordable cost."

Read this guide to learn more about other ways you can improve your credit rating!