Zopa will start using rent payments as a factor in its credit checking process, following a new partnership with rent recognition platform CreditLadder.
The partnership will use open banking technology to help tenants build up their credit score by tapping into their rent payment history.
CreditLadder said that its partnership with Zopa will help tenants to more easily access loans and may reduce the cost of borrowing money.
Zopa intends to use the rent payment data in its free credit score tool and loan eligibility checker, Borrowing Power.
“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,” said Clare Gambardella, chief customer officer at Zopa Bank.
Sheraz Dar, chief executive of CreditLadder added: “There are over 10 million households in the UK who rent and our mission is to ensure they can benefit from reporting their rent payments to improve their credit score – just like home owners do when it comes to their mortgage.”