Rent reporting is a great thing, in fact we loved it so much at Huuti we decided our prospective first-time buyers deserved the same opportunity and hence “Rentroster by Huuti” was born. The rent reporting proposition is very new in the UK and whilst this should be an opportunity for all parties to get involved and do something that has a great underlying social value there seems to be only 1 credit bureau championing rent reporting. Experian have been at it for a while now, working in tandem with the social investment arm of the Big issue to create the rental exchange scheme. The remaining two credit bureaus are of course quietly creating their own special version of magic. We will just have to wait and see.
For tenants who were paying rent with hopes of getting on the property ladder, now your rent payments mean a whole lot more as they help you get close to your dream of that 4 bedroom house down in Fulham, You know, the one with the swings at the back where your 3 year old daughter can swing from side to side. Yes, the homebuying dream is still very much alive!
For those with little or no credit rent reporting helps you get a start without needing to take on expensive debt.
So it sounds like a great solution to a problem you might not have known you had until now. Rent reporting as it stands has a downfall. Not all credit bureaus are collecting the rent reporting data. At the moment the only bureau collecting such data is Experian.
Here are a few reasons why reporting rent payments to all 3 credit bureaus is crucial
You don’t know which credit bureau the lender uses to assess your creditworthiness.
It’s obvious, you have no idea what bureau the lender is using and as such it’s always a gamble and a bit of hope that the lender is using Experian(as of now). This means in a scenario where the lender isn't using Experian your rent reports might not have affected your score and will therefore make no difference to the interest rate you pay. This is why reporting to all 3 credit bureaus is very important.
- Credit bureaus do not share data
Ofcourse if credit bureaus shared data then point 1) will be quite irrelevant but unfortunately credit bureaus don’t share data. Andy who is to blame them? They are ofcourse competing to sell such data on to businesses etc.
- Credit scores of course depend on data- different bureaus collect different types and amounts of data
This is something you should be aware of. Due to the fact that credit bureaus do not collect the same type of data there will always have different scores in comparison to other bureaus for the same person.
Rentreporting is here and it’s only a matter of time that we get to see what the remaining two credit bureaus have in mind. Once all credit bureaus are collecting rental payment performance data you must ensure your rental reporting agency is reporting to all 3 Credit bureaus so your credit file has some consistency regardless of what credit bureau your lender is using.
But that’s just the first bit, you must ensure that the rental reporting agency is reporting to all 3 Uk credit bureaus at the same time.
Rentroster fully advocates for reporting to all 3 credit bureaus as we believe tenants deserve a right to get rewarded for the huge financial commitment known as rent.