Renters to pay £8/month to report data to big credit reference agencies
Rent reporting platform CreditLadder allows users to provide their rental payment information to either Equifax, Experian or both credit reference agencies.
Renters, who typically have ‘thin’ credit files due to limited borrowing history, were offered a lifeline when services such as CreditLadder launched allowing them to add on-time rental payments to strengthen credit ratings.
Originally, it partnered with Experian three years ago before partnering with Equifax in March this year. With both services, there was no cost to the tenant and as such, tens of thousands of renters signed up to the scheme.
And while renters can report to either Experian or Equifax for free, for those who want to report to both the credit reference agencies (CRAs), CreditLadder has introduced an £8 a month fee as of September.
However, those who pay for the year upfront will be able to pay a lesser amount at £60 a year, the equivalent of £5 a month.
Further, the changes are for new customers while existing customers will switch to the new pricing model once they move rental property. They can of course continue to just report to one CRA to avoid a monthly fee.
One user took to Twitter to express his dismay at the move. He wrote: “Just read about @creditladder’s new £8 per month charging just to report that someone’s rent has been paid to the CRAs. I accept that there’s probably costs involved in running the system, but not £8 per month… As if renters don’t have a tough enough time as it is.”
Sheraz Dar, CEO of CreditLadder, said: “As with all businesses, it’s important they are commercially viable. The rent reporting service, open banking platform and the customer service we provide (rated 5* on TrustPilot) comes at a cost.
“We have therefore introduced a ‘Freemium’ model that continues to allow tenants to benefit from the service for free, but with enhanced features attracting a fee.”