canopy launched CanopyGrow, a subscription service designed specifically to help renters increase their credit score.
Seven in 10 tenants in the UK are thought to be saving for a down payment to buy their first home. But one in four are already believed to have been rejected because of a bad credit history – with the difference between a ‘good’ and ‘excellent’ credit score averaging over £45,000.
CanopyGrow is priced at £7.99 per month and allows tenants to report their monthly rental payments to three of the UK’s credit reference agencies – Equifax, Experian and TransUnion – via its rent tracking feature.
Through Clever Credit, all subscription payments are turned into credit agreements which are reported to agencies and the credit profile provides information on what they are doing well and what needs improvement to increase their credit score.
It is amazing that tenants spend so much of their monthly income on rent. »
Chris Hutchinson, Managing Director of Canopy, says, “It’s amazing that tenants spend so much of their monthly income on rent, but it’s virtually invisible when a credit score is created. It is not fair.
“A core part of our mission at Canopy has always been simple: helping tenants build their financial health.
“We have 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.
“With Canopy Grow’s Rent Tracking, Smart Credit and Credit Profile services, we are increasing scores from day one and actively encouraging people to do more to increase their credit score, while providing details on the elements that could have an impact on their score.
“Our philosophy has always been to innovate for tenants, but through our work we also bring broader benefits to the housing market, whether for landlords or letting agents as well. Rewarding positive tenant behaviors means they are more likely to be good tenants, so everyone benefits from CanopyGrow.
Canopy is not the only operator in this market. CreditLadder, which has the longest track record in the industry, has brought in almost £1bn in rent payments and is the only way for tenants to report rent payments to the four main credit reference agencies in the UK. United – namely Experian, Equifax, TransUnion and Crédiva.
Sheraz Dar of CreditLadder, says, “As a company, we have always been focused on helping tenants improve their credit position and 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 coming weeks. »