Credit rating – Tenants have little understanding of…

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.