Starling partner with Credit Ladder

6 Likes

This is really good of Starling

I’m yet to see any evidence that using Credit Ladder leads to any benefit at all (other than for Credit Ladder in obtaining all your data). Can anyone report their experience?

They report it to Experian only AFAIK so if the place you’re applying to only scans Transunion and Equifax you’re shirt out of luck

Check your credit report.

The biggest problem is, even if a company searches Experian, unless they have updated how they pull information, they don’t see rental information, information isn’t reported back as a whole set of data, companies pull relevant information from Experian to determine your risk. Rental data is new, its not something most companies need to see, so until they update, its not something that they will see.

That’s something credit reference agencies tend to forget to explain. They may report something, it does not mean anyone sees it.

Do mortgage lenders even pull rental info from Experian? If not then is Credit Ladder simply exploiting the hopes and aspirations of renters who want to be homeowners?

The lone lender endorsement on the Credit Ladder homepage could not be any more generic: “We would always encourage people to try to build up a credit history, as this helps us consider the creditworthiness of those looking to borrow money.” (HSBC)

I would assume some do, but I doubt they all do. In fact I know some definitely don’t.

More specifically, is starling going to use the data? Is that the point of the integration?

If starling demonstrates that it can help lend effectively, others may get more interested - to remain competitive, if nothing else

I think it’s something the government are trying to encourage to help those renting.
Hence the contest that credit ladder won

I’m not sure that’s what’s happening as the data already sits with the bank to start with so they could already monitor their customers’ rent payments if they wanted to. I expect Starling are just aiming make a commission on the referral.

Odd product,

Whoever you bank with can see your history, in fact take your bank statements to any other bank and they can see it also, or do banks now when you apply for a mortgage not ask you for bank statements anymore?

Is this the classical designing a product that isn’t really needed?

Hopefully it’s to stop them telling you, you can’t afford a mortgage which wound be cheaper than your rent