People who live in rented accommodation and pay their monthly rent on time, will see their positive payment behavior being made accessible to participating credit providers, helping to open up access to more affordable credit.
Information about mortgages payments in South Africa has always been recorded on credit reports, enabling mortgage holders to build a positive credit history and gain access to more finance deals. Until now, people living in privately-rented properties who meet their rent payments on time have never seen this positive information included on their credit reports.
The partnership will provide Experian South Africa with access to a comprehensive rental payment database. Including rental history in credit files will enable greater financial inclusion, especially those among South Africa’s under-banked population. The move will allow consumers to build or rebuild good credit profiles by paying rent on time to enable them to qualify for appropriate new leases or other financial products.
The partnership’s benefits include:
- Access to more affordable credit. The inclusion of rental-payment data will help strengthen an individual’s credit history.
- A boost for first-time buyers to provide a welcome boost to the credit histories of people looking to get onto the property ladder for the first time, as lenders will be able to more easily verify their full borrowing history.
- Easier identity verification. Many financial organisations rely on electronic identity checks based on credit reports. Stronger credit reports will help more people successfully satisfy these checks, avoiding the need to resort to slower, paper-based methods.
This unique partnership offers a secure and compliant way to include a tenant’s payment history in their respective reports, strengthening their credit history and helping them qualify for more and lower-cost credit deals. This enhanced view of an individual’s repayment history will also improve the ability of lenders to treat customers fairly with more accurate lending decisions based on a deeper understanding of their customers.
TPN launched in 2000 as a niche market database specialising in collecting information on tenant behaviour. In 2006 TPN registered as a credit bureau and extended the tenant database to include the tenant’s monthly rental payment profile information. The TPN database assists property managers and property owners select quality tenants based on their previous rental performance.