For millions of tenants across the UK, paying rent on time is a large monthly financial commitment — and can often be more money than a mortgage payment. As a result of this it is a common question that tenant ask if paying rent help to improve their credit score.
The answer to this is yes it can. However this would only count if the rent payments are reported to the credit reference agencies.
Why Credit Scores Matter
If your plan is to apply for a mortgage, or even start a mobile phone contract, then your credit score is really important as it reflects how a lender see how you manage things financially. It shows them how reliable you are in repaying debt
However there can be a problem as traditional credit scoring do not automatically include rental payments in a credit score. Which means if you have consistently been paying a significant amount of rent each month, then none of this will be reflected in your credit file.
What to do
Your rent payments can be included in your credit score but only if you report them to a credit reference agency, such as Experian or Equifax.
Unfortunately, unlike mortgage payments, which are automatically reported, rent payments aren’t included by default.
There are now schemes in place and services in the UK that allow tenants to report their rent payments which by doing so boost a credit score.
How It Works
To make sure any rent payments you are making are accounted for in your, you’ll need to use one of the following methods:
1. Experian
Experian launched the Rental Exchange in partnership with Big Issue Invest. This initiative allows tenants’ rent payments to be reported just like mortgage payments.
2. CreditLadder
CreditLadder is a free service that allows you to report rent payments to Experian or Equifax.
3. Canopy
Canopy offering rent tracking and reporting to Experian and Equifax.
Is a Landlord’s Permission Required?
You do not need your landlord’s permission
Is It Safe to Use These Services?
It is safe. They are reputable rent reporting platforms and are regulated by the FCA.
Estate Agents Role
If you’re an estate or letting agent, if is in a great ideal to suggest rent reporting services to tenants, as it:
For tenants:
• Helps them build a good credit history
• Encourages consistent payments and reduces any risk of late rent
For landlords:
• Tenants with a history of timely payments may be more responsible overall
• Can reduce arrears
Are historic rent payments included
Generally no. It only includes payments going forward as these can be tracked and reported on.
Summary
For many tenants in the UK, rent is their biggest monthly expense — and yet it often goes unrecognised in their financial profile. With rents increasing and changes in reporting services, that’s beginning to change.
By being proactive and signing up to a scheme , tenants can start to build their credit history as they make each monthly payment. Whether you’re planning to buy a home or even just applying for a credit card, rent reporting is an easy and low-risk way to improve your standing.
And for a Bolton estate agents like us, it’s an opportunity to support tenants while enhancing our brand’s reputation for transparency and care for our clients.
