The Rental Exchange Scheme, introduced by Experian, lets tenants have their rent payments included on their credit reports, which can help improve their credit score.
Here’s how it works:
How It Works: You pay your rent to a service like Credit Ladder, which then passes it on to your landlord and reports the payment to Experian. If you pay on time, it can help build a positive credit history.
Risks to Consider: While the RES can boost your credit score, it also has risks. Late or missed payments will be recorded and could harm your credit score. This is especially important if you rely on benefits like Universal Credit, which can sometimes be delayed.