As things stand today, whether you pay your mobile phone bill on time has a bigger impact on your ability to secure a loan or mortgage than paying your rent on time. Even though your rent payments are probably your single biggest monthly outgoing, credit providers don’t generally take them into account when assessing whether you could repay a loan or mortgage.
In 2017, the UK government set out to change this situation and launched the ‘Rent Recognition Challenge’. The goal was to find innovative companies that could use technology to enable rental tenants to record and share their rental payment data with lenders and credit reference agencies, thus boosting their credit score and improving their chances of securing credit facilities such as loans, credit cards and mortgages.
Bud, via it’s rental recognition technology, was named one of the three overall winners of the competition, and secured funding directly from the government to finally help solve this challenge.
Using our expertise in open banking and data services, we have built an A.I. engine that automatically recognises your rental payments and logs them in a ‘rental profile’ for you to share with credit reference agencies. This can be used to improve your credit score, which means that you potentially have a better chance of accessing loans, credit cards and mortgages.