Equifax has entered into a partnership with UK-based rent reporting platform, CreditLadder.co.uk in a bid to include rental payment data in Equifax credit assessments. The collaboration is expected to enable CreditLadder’s customers to pay their rent on time as well as access credit at fairer rates.
Janice Rudd, Data Director at Equifax, said, “The inclusion of rental data in credit assessments is a huge lift to improve financial inclusion and fairer access to the right financial products. This data insight provides lenders with a much more reflective picture of the amount renters can afford to borrow. Renters who make full and timely monthly payments should see a significant benefit in proving their ability to repay a commitment, just like mortgage payers. We’re pleased to work with CreditLadder to unlock better financial outcomes for consumers and lenders alike.”
Equifax states that its clients will benefit from rental data’s inclusion in their existing data services, thus providing them access to the new insights without a need for system change. The supplier points out that tenants typically have thin credit files owing to their limited borrowing history, thus the addition of on-time rental payments is expected to benefit them.
Sheraz Dar, CEO at CreditLadder.co.uk, said, “CreditLadder’s mission is to deliver financial fairness to the UK’s millions of tenants, helping them access the credit they need, for example when they want to buy their own home. As one of the world’s leading credit reference agencies, working with Equifax to add tenants’ payment track records to their reports is a major enhancement for our users, and for our platform.”