Paying on time pays!

Paying on time pays!

RENTAL payments will appear on credit reports for the first time from the end of this year, the credit reference agency Experian revealed.

Tenants who pay rent late will get a black mark, hitting their chances of securing a mortgage or credit card.

Experian expects to include 600,000 rental records by year-end, starting with social housing and expanding to all private rentals. Lenders will have access to the information next year.

Missed payments will damage a credit score, but a history of regular on-time payments could improve it.

A report last week by Experian claimed 93% of social housing tenants will see a boost in their scores as many lack a credit history.

Mark Harris of the broker SPF Private Clients said: “This is a welcome development. Applicants are often rejected for mortgages because of a lack of credit. Showing rent payments would demonstrate a record of meeting financial obligations”.

So…good news for first time buyers and good news for landlords - tenants will be extra keen to make payments on time if they are looking to apply for a mortgage in the future.