A Blackpool born businessman has launched a new service to help tenants boost their credit ratings.
Former Collegiate High School and Blackpool Sixth Form student Asa Bentley has started Credit Ladder for private housing tenants in conjunction with credit giant Experian.
The ex-Manchester Metropolitan University business student said the scheme helps people build a positive credit history, simply by paying their normal monthly rent on time.
He said Credit Ladder helps to build an online proof of identity and credit history which in turn provides the tenant with greater access to further credit facilities.
It means tenants with stronger credit histories could get better rates on loans and mortgages without having to take on additional debt and at no further cost.
Rental payment information will begin building their credit history from the point they sign up, before the data appears on Experian credit reports later in 2016.
Using Experian’s Rental Exchange to record the data, Credit Ladder can help a tenant make the transition from renter to homeowner.
Speaking from Credit Ladder’s Manchester offices, managing director Asa said: “Tenants are paying their rent on time, yet not building any more credit as a result.
“The average tenant pays nearly half of their income in rent and we thought it important they be rewarded for this in a similar way to homeowners being recognised for paying their mortgage every month”.
“We spoke to Experian who have successfully launched The Rental Exchange for social housing tenants. We both wanted to bring the same benefits to the private rented sector and we are delighted to be the first to offer this service to private tenants.”
Experian’s Jonathan Westley said: “We’re delighted to work with Credit Ladder to be able to offer private renters the opportunity to build their credit histories just by paying their rent on time.
“Our research shows there is an appetite among this group to be treated in the same way as mortgage holders and so we hope many more landlords and letting agents will sign up to the Rental Exchange in the future.”