Many private renters are wrong about what really contributes to their credit score and therefore may not be taking the right steps to improve it, claims a PropTech company in the rental industry.
Rent-checking and tracking service Canopy says its research shows that 41% of private renters think having a steady paycheck impacts their credit score, when in fact it has no impact. this one, while 38% also think having a job has it too. .
Other factors that private renters say impacted their credit score are staying with the same bank (27%) and even changing banks (15%). Around 6% think having children helps, and 4% also think lending money to a friend can affect their score.
Three percent of renters even thought owning a pet would impact their credit score, while 27% of private renters are completely unaware of their credit score.
There is clear agreement from the majority of private tenants, although 70%, who have always paid their rent on time, think their rental payments should factor into their credit score, while 35% think that it’s already the case.
Canopy Managing Director Chris Hutchinson said: “Climbing the ownership ladder is an incredibly competitive business and one that prospective owners will need to be as financially fit as possible. Raising the funds needed for a deposit, while improving financial well-being can be a difficult task, which is why lending a hand to tenants by ensuring that their rental payments help improve their credit score can be so important.