PropTech company Goodlord has partnered with a credit reference firm, claiming it will help letting agents to secure more accurate info about tenants.
The partnership - with open banking provider Credit Kudos - enables Goodlord’s letting agent customers to build a more accurate picture of tenants’ income and expenditure.
“The partnership makes life easier for renters who experience difficulty in building a robust credit file because potential gaps in their address history, moving properties frequently and the absence of a mortgage or other forms of credit make it difficult to build a borrowing history. Tenants with irregular incomes are among those most likely to benefit as these additional insights build a more complete picture of their affordability” says a statement launching the new partnership.
Goodlord says the partnership is a further step towards the complete digitisation of the pre-tenancy process.
"Open Banking makes it easier for more tenants to prove their financial health, regardless of whether they have a thin credit profile or aren't earning a fixed income each month, making renting a home easier for tenants and their letting agents” says Tom Mundy, chief operating officer at Goodlord.
Freddy Kelly, chief executive of Credit Kudos, comments: “Having a more detailed picture of an individual’s finances enables agents and landlords to better understand creditworthiness and assess affordability more quickly and accurately. This does not only help make the renting process more secure and faster, but also fairer.”
Credit Kudos claims a third of renters have, at one point or another, been turned down for credit. More than a quarter have previously struggled to access credit from mainstream lenders such as high street banks - with 31 per cent turning to shorter term credit options.