Should late rent contribute to credit score?

Many landlords have experienced the frustration of a late rent payment, or even a rent payment failing to materialise at all.

Despite measures available to chase tenants guilty of failing to pay their rent in full and on time, the Residential Landlords Association is calling for these actions to be permanently marked on a tenants’ copybook, in the form of their credit rating.

Currently, a tenant’s rental payment history is not taken into consideration as part of building a credit score. The RLA believe that including rental payment history in the credit history calculation would not only help prevent some late payments, but also act as a boost for the majority of tenants who always pay their rent in full, and on time.

With many tenants wanting to buy a house of their own, it is absurd rent payment is not routinely included when undertaking credit checks for mortgage applications. Moving to such a scheme would help not just tenants, but also landlords by giving them a clearer sense of whether a prospective tenant has historically paid their rent in full and on time.

Alan Ward, chairman of the RLA

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