Rental platform Canopy has launched a subscription service aimed at helping renters boost their credit score.
The service, called CanopyGrow, is priced at £7.99 per month and offers a number of tools designed for building credit scores.
These include “rent tracking,” which allows tenants to report their monthly payments to credit reference agencies Equifax, Experian and TransUnion.
“Smart credit,” meanwhile, lets tenants see information about their credit profile, like what they’re doing well and what needs improvement. The tool also offers access to personalized advice, powered by Equifax, on actions to take to improve a tenant’s credit rating.
Chris Hutchinson, CEO of Canopy, said there’s a “common misconception” that a credit score takes years to build.
“That’s just not true anymore,” he added. “We’ve identified ways to uncover and provide additional information to credit reference agencies that allows people to prove they are trustworthy borrowers who deserve a higher score.”
Canopy said the subscription service could help aspiring homeowners improve their mortgage potential by boosting their credit score, citing a government housing survey statistic in English showing that 71% of tenants in the UK lead to home ownership.
Mark Bratley, sales director at Equifax, said renters in the UK are feeling the effects of the cost of living crisis “now more than ever”. He added that renters’ ability to see the improvements positive behavioral changes bring to their credit scores could potentially help them save money in interest payments when applying for credit in the future. .