Fancy a new sofa for £799? How about an almost identical one for £2,808? That’s the difference a poor credit rating can make. Now help is at hand.
A poor credit rating can cost you dearly. When you take out insurance, buy something on credit or apply for a loan, you may be charged more if you have a bad credit history.
If you don’t qualify for interest free credit, you might end up with a hire purchase offer that is much more expensive in the long term. Sadly, the poorest of us often have no choice.
To help, East Thames has teamed up with Experian to help improve residents’ credit ratings.
From next year, we will share our records of rental payments with the credit rating agency. That means you will be recognised for paying your rent on time – just like homeowners get better credit ratings for paying their mortgage each month.
Sharing this information will help to reassure lenders that you are who you say you are and that you live where you say. This could make you a more reliable potential customer to companies.
The idea for sharing this information with Experian came from Big Issue Invest, part of homeless charity the Big Issue.
Residents whose rent is paid entirely by housing benefit will not be included in the scheme.
If you have any questions about this, please contact our Customer Accounts team member Vicki Harris directly on 020 8522 4079 (rather than ringing our general 0300 number).
What’s in it for you?
A higher credit score means it may become easier or cheaper for you to:
- Open a bank account
- Get a loan, mortgage or credit card
- Shop online
- Cut your gas and electricity bills by paying through Direct Debit
- Be accepted for a mobile phone contract.