Are you a tenant? Do you pay your rent on time? If so, read on…
A tenants largest expense is most likely to be rent. What surprises most tenants is that currently, this DOES NOT count toward their credit score. Additionally, if you are a Monzo user you will notice that there is no current default categorisation for rent. I imagine this will be available with the new current accounts and their ability to set up regular payments.
What I would like to see is the ability for me to add my rental payments and opt into having them reported to Experian via an integration through CreditLadder. The CreditLadder reporting service is free. This, in turn, would help to build my credit score through my Monzo account and as a result, provide me better deals and savings when seeking credit agreements for mobile phone contracts, white goods, a car and even one day, my first home.
Rewind a couple of years and The Big Issue Invest (their investment arm) partnered with Experian to create The Rental Exchange following the success of the established Rental Burea in the US. The idea is for social and private tenants in the UK to have rent reported helping with identity checks and allowing for access to better credit. Whilst they have been successful in helping 2m social tenants it is now the turn of private tenants. CreditLadder is recommended by Experian for tenants to report their rent and make it count towards their credit file. See: http://www.experian.co.uk/rental-exchange/tenants.html
Disclaimer: I am a Director at CreditLadder
We could readily integrate with Monzo assuming the appetite is there for users. Tenants can pay their landlord/agent direct and we see this as simple as a radio button/accept terms opt-in.
Please do let me know what you think. I’d love to hear the thoughts from such an exciting community.