Finance News

Rent Payments Platform Integrates New Open Banking Rules

Rose Jinks - January 29, 2018

CreditLadder.co.uk is the first tenant credit rating improvement platform in the UK to integrate the new Open Banking rules into both its business model and technology.

For the first time in the UK, tenants can sign up and make rent count towards their credit scores by authorising CreditLadder to read their bank account transactions via Open Banking-compliant APIs.

By using a simple three-step sign-up process to authorise payment tracking, tenants can help to improve their credit scores. CreditLadder, which is a partner of credit reference agency Experian, therefore enables tenants to seamlessly report rent payments.

The benefit for tenants is that, by paying their rent on time, it helps to strengthen their credit history. This, in turn, can help them to access more affordable mortgages and other types of credit, including cards, loans and mobile phone contracts at more attractive interest rates.

The CreditLadder rent reporting service is free, but also offers discounts on high street shopping, cinema, restaurants and mobile phone insurance, plus a free monthly movie and coffee to those that sign up to one of their two paid plans.

Open Banking launched in the UK on 13th January 2018. The first nine banks are busy integrating the new rules into their platforms. These enable account holders to authorise third parties to read the date and amount of any payment leaving their account.

Sheraz Dar, the CEO of CreditLadder, says: “In the past, it has been necessary for both tenants and landlords to complete permission forms to enable tenants to register their rental payments with a credit reference agency.

“But now, a tenant can instead log onto CreditLadder, connect with their bank and permit us to read their statement. This then allows rent reporting to the credit agencies without CreditLadder handling the rent payments.”