If you have had your ears close to the fintech scene you will have noted the excitement floating about for millions of renters who suddenly can see more value from their rent payments. This is good news for those paying rent on time as it gives more weight to their respective credit files based on their payment history.
The creditworthiness assessment bill simply allows your rent payments and council tax payment history to be taken into consideration when a credit proposal is made.
The bill will not necessarily open everyone to new credit but it should at the very least reduce the cost of credit especially for those with very thin credit files.
The bill was presented by Lord Bird, who knows very too well the limitations of society as it currently is to low income households and teenagers. Access to affordable credit can solve a lot of socio-economic problems and we are keen to look ahead in 12 months when the full benefits of this bill will begin to come into effect.
So what can you do now to get yourself set for the credit worthiness bill?
If you are a tenant, get your rent reported to the credit bureaus and get your historic tenancy data ready so you can report your historic rent to your credit file. Make sure to choose a rental reporting agency which reports to all 3 credit bureaus and provides you a free credit score so you can track the changes in your credit file.
If you are a social tenant you can report your rent too but it might be easier to see if your landlord is already reporting data.
Rent reporting is being pioneered by RentRoster which offers all of the above.
If you are a landlord then you should consider the effects of the creditworthiness bill vs the effects of universal credit and the next course of action should be clear. If the light bulb doesn't at least blink then do some more reading. Your not too far off after all!