Credit Ladder

Just looking for people’s views on Credit Ladder. Credit Ladder allows you to pay a company your rent and then they forward this onto your landlord / housing association. However, in doing this they (Credit Ladder) monitor your regular payments and this increases your credit score.

Just looking for advantages/disadvantages of this and people’s experiences.

I have read somewhere that doing this won’t really make a difference to your credit score. As credit lenders don’t take “regular rent payments” as sustainable/sufficient enough. But this could change in the future? So is it worth it?

One of my concerns is something happening to Credit Ladder and I’ve sent them my rent and then I’m left in debt with my landlord and not being able to find the funds.

So my decision in doing this is 50/50 rather than 80/20 etc.

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Not a chance I would risk this!

If you want to try and improve your credit score, you can do the usual things but this seems like more risk than it’s worth.

How will they increase your score anyway?

Is your credit score really that bad?

I would suggest you read it again, they don’t collect your rent. They look for your rent payments via open banking and then report that to the CRA

CreditLadder will read and identify rent payments through the secure access provided. These will appear on your Experian and Equifax statutory credit reports after 6 weeks. We do not collect your rent

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I wouldn’t say it is bad, but about average. However if I’m trying to save up for a mortgage then it could be better with more hope of getting a mortgage.

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Apologies. I’ve been looking at a couple of Credit Ladder alternatives and one of them you send the money to them directly.

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Your credit score doesn’t carry much weight (if any) when applying for a mortgage.

It’s all about affordability. i.e. Salary and monthly outgoings on bills, shopping, nights out, credit cards, loans combined with what you’d pay if you owned a property.

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But your post is about Credit Ladder, you’ve not mentioned alternatives

This exactly, if your score is fine, don’t worry about it.

They want to see all your incomings and outgoings. For mortgages your best to try pay off as much as you can on outstanding debts way before you want one. Then also ensure in the 3 months up to applying you don’t splash out on anything that’s not necessary.

They check over your bank statements for that period, then run forecasts etc over all that info, that works out if they can lend to you or not.

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Oh ok fair enough.

I haven’t been in any debt for around a year or two. I pay off all my bills on time and any credit cards I have spent on always get paid off on time too.

I just thought having a credit score of “fair” or “good” would give me a less chance of getting a mortgage than if it was to say “very good” or “excellent”

Car finance, loans etc would generally benefit as you’d get a lower APR.

Mortgage market works differently. It sounds like you’re doing the right things already so just keep at it.

I’d highly recommend going to the MSE website and reading the mortgage guides they have. All the info you’d ever need, which allows you to forward plan for when that big day might be.

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Ok brilliant. Thanks for your help.

It won’t. The significant vast majority of lenders do not look at Credit Ladder payments.

It’s pointless and you’d be giving up your financial data to yet another company for zero benefit to yourself.