Tenants hoping to get on the property ladder or access more affordable loans and credit cards should know that a watershed moment has just passed.

This week credit reference agency Experian revealed that the rental payment records of more than 1.2 million UK tenants have now been added to its credit reference reports, with more due to be added as more people report their rent.

Credit reports offered by credit reference companies such as Experian are used by lenders to assess people’s creditworthiness when they apply for a mortgage, loan, phone contract or credit card.

Experian is the only one at the moment to have added rental payments to its reports.

The tenant payment records it has been received come from 150 letting agents, social housing providers and local authorities as well as CreditLadder, which is the largest and longest established of the platforms offering private tenants a way to have their rental payments recognised.

Rent power

Experian has also revealed the potential power of reporting rent for tenants whichever sector they rent properties within.

It says that 79% of tenants who have their rent recognised have seen a noticeable improvement in their credit score when lenders take rental data in account.

Rent recognition also enables tenants who have been largely ‘invisible’ online until now to prove that they are reliable and regular payers. The proportion of tenants who can prove their identities online rises from 39% to 84% after rent reporting begins.

Experian says many lenders have outlined their interest in adding rental payment data to their credit decision-making process, while a number are already testing the data in their systems.

“We welcome the confirmation from Experian that nearly 80% of tenants saw an improvement in their credit score after having their rent recognised,” says Sheraz Dar, CEO of CreditLadder.co.uk.

“As the first and biggest rent reporting platform in the UK we’re delighted that tenants are now getting the benefit they deserve.”

CreditLadder can help you improve your credit score

If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.