Business and consumer insights expert, Equifax, has announced it is partnering with renting platform, CreditLadder.co.uk, to include rental payment data in its credit assessments.

Equifax described the agreement as a ‘boost’ for the thousands of tenants who use CreditLadder, enabling people who pay their rent on time to access credit at fairer rates.

The credit reporting agency suggested the partnership was a major step forward to level the playing field between people with a mortgage, those whose payments have historically been included in the credit files, as well as the three in ten Brits who currently rent their home – according to FCA data.

Tenants typically have ‘thin’ credit files due to a limited borrowing history, Equifax added, and are therefore expected to see a ‘strong’ benefit from the addition of on-time rental payments in their credit files.

Equifax data director, Janice Rudd, said: “The inclusion of rental data in credit assessments is a huge lift to improve financial inclusion and fairer access to the right financial products. This data insight provides lenders with a much more reflective picture of the amount renters can afford to borrow.

“Renters who make full and timely monthly payments should see a significant benefit in proving their ability to repay a commitment, just like mortgage payers. We’re pleased to work with CreditLadder to unlock better financial outcomes for consumers and lenders alike.”

CreditLadder CEO, Sheraz Dar, added: “CreditLadder’s mission is to deliver financial fairness to the UK’s millions of tenants, helping them access the credit they need, for example when they want to buy their own home.

“As one of the world’s leading credit reference agencies, working with Equifax to add tenants’ payment track records to their reports is a major enhancement for our users, and for our platform.”

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