CreditLadder and Digital ID Connect, two prominent UK-based companies, have formed a partnership.
CreditLadder, recognised as the UK’s first and largest rent reporting platform, collaborates with Digital ID Connect, the largest digital identity app network in the UK. This alliance is set to enable users of Digital ID apps to effortlessly report their rental payments to the four main credit reference agencies.
The driving force behind this partnership stems from the significant portion of the population in England who are renters – nearly 40%, rising to over 50% in London. CreditLadder, having reported over £1bn in rent payments, aims to bring financial fairness to these tenants. This initiative ensures that timely rent payments are reflected in credit files, similar to how homeowners benefit from mortgage payments, thereby potentially boosting a tenant’s credit score.
The partnership further entails benefits that extend beyond credit score improvement. It signifies a step towards inclusive financial practices, recognising the importance of rent payments in credit assessments. This recognition is increasingly reflected in how lenders in the UK, including mortgage providers, factor in rental payments during credit evaluations.
Among the notable statements, John Abbott, Chief Commercial Officer for Strategic Partnerships at Yoti, said, “The vision for Digital ID Connect is to provide faster and more secure ways for people to share their information with valued services that need identity or age verification. I am delighted to be working with CreditLadder so that the tens of thousands of people installing our app each month have extended partnerships available at their fingertips.”
Sheraz Dar, CEO at CreditLadder, added, “At CreditLadder, our sole mission is to help UK tenants access fairer finance. By enabling Digital ID Connect users to report their rent payments we move another step closer to helping every single tenant improve their access to credit and accomplish their financial goals. With lenders in the UK factoring in rent payments when making credit decisions, including beginning to consider on time rent payments when looking to assess mortgage applications, it’s yet another reason why reporting rental payments is so important.”
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