RentScore is a rent collection tool that motivates tenants to pay on-time, by recording rent payments on their credit scores. It acts as a standard rent collection scheme, where rent payments are collected via direct debit and transferred to the landlord; the landlord is fully notified of all late or missed payments, but RentScore does all the chasing.
However, RentScore isn’t your normal rent collection tool. It comes with an added bonus. Each and every rent payment is recorded with the credit agency, Experian. RentScore, therefore, acts as an incentive for tenants to pay their rent on time as they can be rewarded with an increased credit rating. As a result, rent payments are much more likely to be paid consistently and on-time, as any late payments will be negatively recorded.
Landlords can sit back and relax as their rent collection is taken care of for them and tenants can finally have their rent payments recognised. A win-win.
I’m a landlord, what’s in it for me?
Being a DIY landlord can be a very stressful job, and with so many things to do and so many balls in the air, sometimes it can feel a little like a juggling act. So why not hand over one of those balls and take away some of the stress. From as little as £14.99 a month you can sit back and relax, knowing that your rental income is taken care of! It’s done through direct-debit and all organised through RentScore. The fee is simply deducted from the income so you don’t have to fret about any payments at all!
The best thing about RentScore is its simplicity, so it really is hassle-free! All you have to do is fill out a short online form to register and then Rent Score does the rest!
From your application, they will contact your tenants to organise payments and set up the direct debit. They liaise with them directly, meaning that you are left to enjoy your income without any inconveniences or distractions. Once the direct debits have been set up, then you are good to go! You will receive your payments within 1 working day of them being collected, so you won’t be waiting around for things to be processed.
Rent payments are much more likely to be on time as tenants are motivated by the opportunity to increase their credit score, so you are less inclined to stress about your rental income.
It’s a win-win situation and you get the opportunity to shake those negative stereotypes that have become synonymous with the title of landlord and become a SUPER LANDLORD.
I’m a tenant, what’s in it for me?
The opportunity to improve your credit score!
Research has shown that 98% of you pay your rent on time and you fully deserve some recognition for that. Tenants spend, on average, 27% of their monthly salary on rent. RentScore means that you can finally have such a large expenditure recorded on your credit report. By having regular on-time payments logged, you have the opportunity to build a good credit score and, subsequently, place yourself in a strong position to start climbing the property ladder.
Your credit score ultimately decides whether a lender will agree to provide you with a mortgage. A high credit score means that you will be given a lower interest rate and a better mortgage. A good credit report is highly sought after by mortgage providers; the higher the better, as it shows that you are a reliable person to loan money to. A low credit rating, normally assigned because you regularly miss or make late payments, will show negatively against you and will result in higher interest rates and the possibility that you are refused a mortgage altogether.
A lack of credit history can often be seen just as negatively as a low credit score. Without any proof of your liability, lenders will be sceptical to provide you with any loans. They have no evidence either way if you will make on-time or late payments and sometimes this can be as high a risk as those with a bad credit rating.
This is why it is so important to build your credit rating where you can, and being given to do so with your rental payments is a fantastic opportunity.
But remember, it works both ways. Whilst RentScore gives you the perfect opportunity to raise your credit score, it is just that… an opportunity. Late or missed payments will still be recorded by Experian and will subsequently be recorded negatively on your credit score. That is why Rent Score acts as an incentive for you to make payments regularly and on time, as to not do so will affect both yourself and your landlord negatively. So keep those payments steady and you could be reaping the benefits when it comes to buying your own house.