Digital bank Zopa has partnered with CreditLadder to help renters improve their credit score thus increasing their eligibility for a Zopa loan. Zopa notes that the integration was accomplished using open banking technology.
As renters do not have monthly rental payments added to their credit file, Zopa will now include the data making loans easier to receive and perhaps at a lower cost. Zopa’s credit score tool and loan eligibility checker, Borrowing Power is a free tool in the Zopa app that calculates a customer’s financial health score, recommends targeted actions to help them improve it and links directly to their eligibility for Zopa products. CreditLadder data will now be incorporated in the Borrowing Power score.
Zopa highlights that CreditLadder is the UK’s first and biggest rent reporting platform and has reported close to £500 million in rent payments on behalf of tenants.
Clare Gambardella, Chief Customer Officer at Zopa Bank, commented on the new partnership:
“We at Zopa are proud to be teaming up with CreditLadder to enable our customers to report their rent payments and use them to help build their credit score. We believe that as many people as possible should have access to fair, simple and transparent products. Partnering with CreditLadder and using its Open Banking technology via our app makes it possible for us to offer those that rent a more accurate credit score, tailored tips on how to improve their credit health and access to more affordable Zopa loans in the future.”
Sheraz Dar, CEO and Co-Founder of CreditLadder explained there are over 10 million households in the UK who rent and their mission is to ensure they can benefit from reporting their rent payments to improve their credit score.