UK Renters Get New Way to Report Rental Payments on Credit Reports Via Equifax and Bits
Equifax UK partners with credit creation app, Bits, to allow Equifax customers to report their monthly rent payments on their credit reports, improving their credit rating and making it easier to buy their own. house in the future.
The collaboration is the latest example of Equifax’s commitment to ensuring the credit system is fair and transparent, allowing tenants to access some of the same benefits enjoyed by those with mortgages – which have historically been included in credit records.
The Bits app was launched in 2019 by founder Faisal Khalid who moved from the United States to London in 2012. Upon arrival, he found himself unable to open a bank account, start a mobile phone contract. or get credit card approval due to its lack of UK credit history.
Bits was started as a digital store card, but has long sought to develop products that help people improve their credit scores. Their latest product is a rent declaration service which was launched in partnership with Equifax.
By recording monthly rent payments on their credit report, any of the UK’s 13 million tenants can now boost their Equifax credit score using the Bits app, meaning lenders will have a view regular payments and a more complete view of their financial situation.
Faisal Khalid, CEO and Founder of Bits, commented: âWhen I came to UK I couldn’t believe it. The banks treated me like I didn’t exist. I had a job and had years and years of credit history in the United States. But as far as they were concerned, none of it mattered. I felt trapped. My lack of credit score was having an impact on my life, but how was I supposed to build my credit history if I couldn’t even open a bank account? The service we’re launching today, with Equifax, will help people in the situation I was in and provide a solution. It’s understandable that lenders want to know you’re responsible for the money, but it shouldn’t be that hard to prove it.
Janice Rudd, Data Manager at Equifax UK, said: âAt Equifax, we believe in financial inclusion and in finding ways to help credit providers lend with greater confidence so that people across the board. UK can access the credit they need. At its most basic level, people should be able to access suitable credit that takes into account their ability to repay it. The more data we have, the more complete the picture we can share with lenders. I’m glad that with today’s announcement, we can now help more of our clients share a more complete picture of their financial history and build stronger credit scores.