Why isn't private rent counted towards tenant's credit score?

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    Why isn't private rent counted towards tenant's credit score?

    As the title.

    If it was then tenants would be more incentivised to keep up to date with their rent.
    I would have thought Gen rent et al would have asked for (demanded) this.

    Or have I missed something?

    #2
    There's an equifax product that does this, but it's only available to agents and massive landlords.
    The agent and the tenant both have to sign up to the product.

    The basic problem is that the people who have to do the reporting are the people who receive the money, and the benefit isn't seen at that end of the transaction, so the incentive and benefit aren't aligned - which means it won't catch on.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Tenants can already do it using a service such as Credit Ladder.

      Comment


        #4
        Originally posted by DoricPixie View Post
        Tenants can already do it using a service such as Credit Ladder.
        That looks useful and solves the problem of reporting!
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          I just looked it up and it seems like a good idea.
          I wonder why it's not got more media attention.
          Do you know how much it costs?
          Do you think it's a good idea to suggest it to tenants?

          Comment


            #6
            Originally posted by Berlingogirl View Post
            I just looked it up and it seems like a good idea.
            I wonder why it's not got more media attention.
            Do you know how much it costs?
            Do you think it's a good idea to suggest it to tenants?
            It’s been recommended in a number of newspapers and BBC. It’s free for Credit Ladder to report rent payments to one credit reference agency and if tenants want the payments reported to Experian, Equifax and Trans Union it’s £60/year or £8/month. As a tenant, if I were to bother, I’d choose the free service.

            Can landlords view tenant’s full credit files during referencing though or the generic credit score generated by the credit reference agencies?

            Comment


              #7
              You can't see a complete credit score, just a summary.
              Certain organisations are allowed greater access, but it's very limited (this is based on my experience which is probably 8 plus years old).
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                I'm not sure how useful they are anyway. It'll pick up someone who doesn't pay off their credit but someone who lives on the never never has a better rating than someone who doesn't use credit - and I would choose the latter as a tenant.

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                  #9
                  I think the thing is that most sensible landlords and old fashioned mortgage providers know that credit scores are almost meaningless - which is why they want actual financial details, bank statements and discussion.

                  The problem is that in the new world everything goes down an algorithm where the construction of the algorithm is mostly nonsense. What is needed is not better scores but common sense.

                  Comment


                    #10
                    Weirdly many landlords seem not keen on people knowing their business, their actual rent income etc.... especially centrally logged and reported Can't be that, surely....
                    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                    Comment


                      #11
                      Weirdly someone who thinks they want to have control over my £500,000 asset but refuses to tell me who they are and what they are in however much detail I wish, is going to get a short shrift byebye. I need to know what is relevant because the risk is 99% on one side. Can't see it is of relevance to the tenant to know where the L eats their lunch. Certainly other things are relevant in that context and if the T feels they want things that are relevant to them, but which I regard as non relevant, they are just as free to move on to someone else.

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                        #12
                        Credit scores do not mean that much. What you really want to find out is if the tenant has any adverse credit history such as a CCJ or ever been bankrupt etc.

                        Comment


                          #13
                          Originally posted by theartfullodger View Post
                          Weirdly many landlords seem not keen on people knowing their business, their actual rent income etc.... especially centrally logged and reported Can't be that, surely....
                          No prospective tenant has ever asked me so I assume they're not interested.

                          Comment


                            #14
                            No wonder landlords are being targeted with some of the attitudes on display in this thread. Look what happens when a tenant requests references from previous tenants to see if the landlord is any good....black balled by every letting agency in the city. Perhaps that's why they don't ask, not because they are not interested.

                            https://forums.landlordzone.co.uk/fo...evious-tenants

                            Would any of you book a room, a table at a restaurant, or hire someone's services without wanting references yet it is expected that tenants take it on blind faith that the landlord isn't a nut job and actually maintains the property properly? What with demand far outweighing supply, tenants are left with no choice as they dare not be seen as problematic.

                            Comment


                              #15
                              Originally posted by DoricPixie View Post
                              No wonder landlords are being targeted with some of the attitudes on display in this thread. Look what happens when a tenant requests references from previous tenants to see if the landlord is any good....black balled by every letting agency in the city. Perhaps that's why they don't ask, not because they are not interested.

                              https://forums.landlordzone.co.uk/fo...evious-tenants

                              Would any of you book a room, a table at a restaurant, or hire someone's services without wanting references yet it is expected that tenants take it on blind faith that the landlord isn't a nut job and actually maintains the property properly? What with demand far outweighing supply, tenants are left with no choice as they dare not be seen as problematic.
                              I would have no problem at all arranging for as many references of myself as asked for, and if I think they are asking for irrelevant things and they disagree they are free to find someone else. It is a matter of the balance of risks in a very problematical one-sided transaction (basically a £500K loan).

                              But
                              a) I don't see any hint of what you suggest is the case in this thread
                              b) I haven't a clue what securing a transaction has to do with government targeting of tenants and making them more vulnerable by governments

                              Comment

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