You can finally boost your credit report by simply paying rent!

Written by
James Dwyer
Principal
Renters
June 24, 2019

All hail Lord
Bird! If you don’t know who he is, here’s why he should be celebrated by
renters. As well as founding the
magazine, Lord Bird thinks a tenant’s monthly rentalpayment should
count towards their credit report - currently they don’t while mortgage
repayments do.

 It’s
something we couldn’t agree with more. We’re thrilled Lord Bird has recently
steered his Creditworthiness
Assessment Bill through Committee Stage, having gained widespread cross-party
support in the House of Lords. The Bill will be heard in the House of Commons
later this year, on its way to potentially becoming law.

 Renters,
however, don’t have to wait for this to be legally adopted to benefit. Sign up
to Canopy and be rewarded for paying your rent from day one, thanks to RentTracking
 - our initiative with Experian that allows
your rent to improve your credit report. Our service is so highly rated that
chose to feature Canopy’s
RentTracking and one of our happy renters in its recent
advising Millennials on how
to build a credit score.  

 Lord
Bird’s Bill comes at the same time as the
Government’s Rent Recognition Challenge – an invitation for providers to develop
products that will enable tenants’ rental payment to be shared with lenders and
credit agencies. Canopy’s RentPassport product was a first round winner, and we
are now in the second round after the judges recognized our passion and
commitment to renters.

Canopy Founder, Tahir Farooqui says: “We’ve pre-empted Lord Bird’s wishes by already rewarding
renters and taking part in the Rent Recognition
Challenge shows we’re dedicated to developing our RentPassport. Paying the rent promptly
every month should count for something as it demonstrates responsibility and
financial prudence, especially when you consider some rents surpass mortgage
repayments in value. Our renters are already building a better credit report
every time they pay and any renter can benefit, even if their landlord or
letting agent isn’t using Canopy.

What is a credit report?

Your
credit report is a summary of your
financial reliability, and details your history of paying debts, credit cards,
loans and other bills. Your report will also show missed payments, outstanding
debts, the number and type of accounts you hold, every time you have applied
for credit and debt collection actions.

Why is it important to
build a good credit report?  

Lending
money to someone or giving them credit is seen as a financial risk, so banks
and financial organisations assess each applicant based on their financial
history and repayment habits. A negative report can stop people getting a loan,
finance for a car, a mortgage and even a job – as employers are increasingly
requesting credit reports before hiring. Landlords can also refuse a tenant
based on the contents of their report. A good credit report also helps secure
better rates of interest on loans and mortgages, and even cheaper utility
tariffs.

Canopy already rewards rent
payments

Tahir adds: “It
is simply crazy that many of the UK’s 11 million renters pay a huge sum every
month – showing they can budget and manage their money – only to have their
reliability unrecognised by credit agencies. We’re pleased Lord Bird shares our
view and hopefully the initiative will become more widespread in the future.

Sadly,
there are several hurdles to jump in the House of Commons and the bill could
still be defeated. Luckily, RentTracking with Canopy will remain unaffected and
renters can build a better credit report with us, starting today,” 

To start adding your rent payments to your credit file, sign up to Rent Tracking today online or download the app on iOS.

 

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