A landlord registers with Experian.

Solihull Community Housing is the first landlord to join Experian. This is a program to help average tenants access loans from financial institution based on how the pay their rent. It also encourages them to pay at the right time. There are more good reasons as to why an individual landlord should understand this initiative before signing up.

The meaning of the initiative

Credit score is important for anyone who has an active financial life. This is what every financial institution will consider this before lending you money. It determines your eligibility for a credit card, hire purchase and the interest rate for your loan or mortgage.

Experian is one of the companies that compile credit details of various people. They collect all details to determine your credit score which is used to determine you ability to repay a loan.

Advantages of the idea

Many tenants simply pay their rent on time just because they should do. But with this initiative, they can boost their credit score. It is a simple way to enable them get low interest loans and be eligible for many banking opportunities reserved for those with high credit rating.

It is also an advantage for a landlord because they will not lose anything.

Tenant will always pay on time to avoid lowering their credit rating. The process of collecting rent will easy and the landlord will be sure to their money on time.

Is it good for both parties?

When tenants always pay rent without too many delays, the landlord benefits a lot. However, this new idea of registering with Experian will be good for both the tenant and landlord. But it may urn into a disadvantage especially if the tenant is going through bad financial times it can put them into more problems and very low credit score.

It would not be advisable for any one with significant financial problems to have their data given to Experian. This can hurt their financial life badly and make them lose financial assistance that they have getting. The interest can also go high and this will only make things harder for person who is already struggling. In short, it will worsen the situation for a tenant who can hardly maintain their family.

In addition to this, some landlords may have to deal with empty houses as tenants shy away from their properties. Any one who is not sure about their ability to par rent on time will look for a landlord who is not registered with Experian.

Credit rating does not lie about someone’s financial reliability. Letting agencies will find this initiative important because they can tell in advance if the tenant is able to pay rent on time. A tenant can convince the landlord that they are able to pay the house on time.

Landlords have to think twice before registering for the program. It can scare potential tenants who do not want to risk being forwarded to credit bureaus if they pay the rent late. Late rent is better than an occupied house that can go for months without giving the owner even a single cent.


http://onlet.co.uk/