The firm is launching Rental Exchange, which it says will strengthen tenants’ credit rating by taking into account their rental payment history with their permission.
Paul Vescovi, UK & Ireland managing director at Experian Credit Services, says: “With several million people living in privately rented accommodation, a significant percentage of the population could be missing out on mainstream, low-cost credit because lenders do not currently have a comprehensive picture of their financial track record.”
Sian Williams, head of Transact, the National Forum for Financial Inclusion, says the move is a very welcome development for those living in private rented accommodation who have until now found it difficult to build a credit history.
She says: “If used well, this could be a very effective tool for allowing them to access a wider range of services at a more affordable cost.
“Key to its success will be ensuring that consumers are well educated about the service. This will include making clear the impact that missing a rental payment could have on their credit rating, especially if it is paid via housing benefit, which is often out of their hands.”