Why renting can be bad for your financial health
A NEW study has revealed that more than one in three renters have suffered an adverse financial experience due to their housing situation.
This may be affecting their long-term financial health and includes having deposits withheld and having to borrow money from family or friends to pull together enough money for a deposit.
The survey of over 1,000 renters has been put together by free-for-life credit reporting service Noddle with the help of industry experts including campaigning group Generation Rent.
It has found that a quarter of respondents say they cannot look after their long-term financial situation as they have to concentrate on living month-to-month and more worryingly, some renters’ behaviours may be hampering their chances of improving their financial health and credit score.
Jacqueline Dewey, managing director of Noddle, said: “Generation Rent is here for the long term.
“Our survey found that nearly two-thirds of renters believe they will never own their own home. However, a lot of this group are putting off thinking about their financial health and credit score and as a result, are much more likely to run into problems when applying for any financial product.
“Not being aware of your credit score doesn’t mean it isn’t there – but it could store up nasty surprises for the future.”
Based on the findings of the report, Noddle has developed the following guidelines for renters to ensure they’re not locked out of access to credit in the future:
• If you can’t access your credit report, this indicates that not enough information is held about you.
Ensure you are on the electoral roll. As well as giving you the ability to vote, this is also a major significant piece of information that is used to validate and verify your identity.
• Take stock of your finances. Do you have any old credit cards or store cards you don’t use? Closing them means you’re not risking them going into the red.
• Try to have a utility bill in your name coming to your address.
It makes it much easier to prove you live there when applying for any financial products.
• The survey showed that many renters think their finances will improve by the time they have to worry about it.
However, not building up a credit history no can cause problems further down the line. »●Click on www.noddle. co.uk to check your credit report.