Rent payments and credit scores - new partnership to benefit renters

Rent recognition platform CreditLadder, which enables renters to add their payments to their credit history, has announced a partnership which aims to benefit around 10,000 tenants.

The partnership with Bud, a financial network, is designed to help more renters on to the property ladder in the future.

Bud helps banks to collaborate with fintech firms on creating new experiences for their customers.

The partnership with CreditLadder will allow consumers to directly access the rent recognition platform in their banking apps, via the Bud platform. This means tenants will be able to add their rental payments to their credit history.

CreditLadder and Bud both took part in the government's Rent Recognition Challenge, the final funding of which was recently won by the two firms and PropTech startup RentalStep. 

The partnership takes advantage of the Open Banking initiative, which enables bank customers to share their spending data with third parties should they wish to, and access a wider range of appropriate financial products and deals.

"About 80% of our team rent their homes, it’s their biggest monthly outgoing and they have long histories of making those payments on-time, month after month," says Alan Walsh, spokesperson for networks and partnerships at Bud.

"It was just wrong that this data couldn’t be used to help them achieve what they wanted in life so it’s great to be working with the team at CreditLadder to address the situation."

CreditLadder chief executive, Sheraz Dar, adds: "There is huge momentum within both the banking and tech sectors at the moment to help a greater number of people access more affordable credit, and our partnership with Bud is a ground-breaking initiative that builds on this."