Canopy has launched CanopyGrow, a subscription service designed specifically to help renters grow their credit score.

Seven out of 10 renters on the UK are thought to be saving towards a deposit to buy their first home. But one in four are already believed to have been rejected due to poor credit history – with the difference between a “good” and “excellent” credit score averaging over £45,000.

REPORT

CanopyGrow is priced at £7.99 per month and allows renters to report their monthly rental payments to three of the UK’s credit reference agencies – Equifax, Experian and TransUnion – through its Rent Tracking function.

Through Clever Credit any subscription payments are turned into credit agreements that are reported to the agencies and Credit Profile provides insights into what they are doing well and what needs improving to boost their credit score.

It is astonishing that renters spend so much of their monthly income on rent.”

Chris Hutchinson, Chief Executive of Canopy, says: “It is astonishing that renters spend so much of their monthly income on rent, yet that is virtually invisible when a credit score is created. It’s just not right.

“A core part of our mission at Canopy has always been simple: to support renters in building their financial health.

“We have identified ways to uncover and provide additional information to credit reference agencies that allow people to prove that they are trustworthy borrowers who deserve a higher score.

ETHOS

“Via the Rent Tracking, Clever Credit and Credit Profile services within Canopy Grow, we are boosting scores from day one and actively nudging people to do more to grow their credit score, while providing details of things that could impact their score.

“Our ethos has always been to innovate for renters, but through our work we are also bringing benefit more widely to the housing market, whether that be for landlords or letting agents too. Rewarding a renters’ positive behaviours means they are more likely to be great tenants, so everyone benefits from CanopyGrow.”

Competitors?

Canopy is not the only operator in this market. CreditLadder, which has the longest track record in the sector, has reported close to £1bn in rental payments and is the only way for tenants to report rent payments to the four main credit reference agencies in the UK – namely Experian, Equifax, TransUnion and Crediva.

Sheraz Dar of CreditLadder, says: “As a business, we’ve always focused on helping tenants improve their credit position and to receive credit for the rent they pay. We always welcome plans that can help tenants and look forward to launching new CreditLadder initiatives in the next few weeks.”