Rent payments to be included in credit scoring overhaul
9:08 AM, 4th November 2025, 6 months ago
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A leading credit ratings agency is to include rent payments in its new scoring system, the BBC reports.
Experian is revamping its criteria which could see tenants having their credit scores boosted for paying on time.
The credit reference agency is reshaping how it assesses financial behaviour.
It wants to ‘better reflect more of the everyday financial behaviours that matter’.
That means factors like paying rent, reducing overdraft use and managing credit card balances will now play a greater role in determining an individual’s creditworthiness.
Change to tenant credit ratings
The maximum credit score is also changing so instead of 999, the new system will allow scores to rise up to 1,250.
It will also provide more detailed feedback on how people can improve the score.
Experian has also scrapped its negative-sounding labels such as the ‘poor’ and ‘very poor’ categories.
Instead, there will be five neutral ratings: Excellent, Very Good, Good, Fair and Low.
For those in the ‘Low’ category, specific guidance will be offered on how to move up the scale.
Tenants must opt in
A company spokesperson confirmed that tenants must opt in for their rent data to count.
They added that the change mirrors how more lenders now recognise consistent rent payments as a sign of financial reliability.
They added: “As with other data we’ll soon be including in the updated score, this reflects that more lenders are now factoring in a positive rent history in their decisions.”
It is ‘great news for renters’ who pay rent on time, every month, they said.
Tags:
credit bands, credit rating changes, Experian credit score, Experian update, tenant credit history, tenant rent payments, UK financial behaviour, UK rent payments
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Member Since May 2015 - Comments: 2197 - Articles: 2
10:02 AM, 4th November 2025, About 6 months ago
Good news, rent will be included in score.
Bad news, tenants will have to opt in.
How does a prospective landlord know if the tenant has opted in? This will be a critical factor in assessing a candidate.
Member Since August 2023 - Comments: 10
10:18 AM, 4th November 2025, About 6 months ago
A big step in the right direction.
Member Since October 2013 - Comments: 1642 - Articles: 3
10:38 AM, 4th November 2025, About 6 months ago
Reply to the comment left by TheMaluka at 04/11/2025 – 10:02
Definitely a move in the right direction, but the tenants who default are unlikely to opt-in to Experian. What’s needed is a campaign from the likes of shelter and GR telling renters that they will stand a better chance of securing their rental if they opt-in.
Member Since January 2016 - Comments: 473
11:02 AM, 4th November 2025, About 6 months ago
Will landlords be allowed to refuse tenants based upon low credit score or not opting in to the system? Will landlords be able to charge a higher rent for people with a lower credit score?
Or is it just the mortgage lenders and credit card companies who will be able to act upon the information?
How exactly will landlords be able to report late payments to one of the credit scoring bodies?
Member Since May 2015 - Comments: 2197 - Articles: 2
11:09 AM, 4th November 2025, About 6 months ago
Reply to the comment left by NewYorkie at 04/11/2025 – 10:38
Tenants who do not opt-in will not be able to rent from me, and even if they do opt-in a perfect rent record will be mandatory.
Member Since May 2017 - Comments: 765
11:29 AM, 4th November 2025, About 6 months ago
I wonder how will they gather the data and keep it up to date
Member Since May 2015 - Comments: 2197 - Articles: 2
11:51 AM, 4th November 2025, About 6 months ago
Reply to the comment left by JB at 04/11/2025 – 11:29
My guess, and it is only a guess, is that it will be up to the landlord to report deficiencies.
Member Since August 2021 - Comments: 307 - Articles: 1
5:18 PM, 8th November 2025, About 5 months ago
The monitoring of payments consistently being paid on a given date would be a basic capability of open banking, assuming the tenant ops in to this