Canopy has launched CanopyGrow, a subscription service designed specifically to help renters grow their credit score.
71% of renters in the UK are building towards homeownership with 25% of aspiring homeowners having been rejected for a mortgage due to poor credit history. According to industry research, the difference between a ‘good’ and ‘excellent’ score can be £45,672 on the average mortgage.
The CanopyGrow subscription service, which costs £7.99 per month, includes:
- Rent Tracking – allowing renters to make their biggest expense count by reporting their monthly rental payments to all three of the UKs Credit Reference Agencies (Equifax, Experian and TransUnion), proving they pay on time, in full every single month
- Clever Credit – turns subscription payments into a risk-free credit agreement that is reported to the bureaus to show regular payments are being met. This in turn will help to boost a renter’s credit score as repayment of credit forms a major part of a credit file
- Credit Profile – renters will be able to view detailed insights on what is holding them back, what they are doing well and what needs improving. It will also give access to personalised advice on actions to take that will improve a credit score powered by Equifax.
The CanopyGrow subscription service helps identify ways to uncover and provide information of good money habits to Credit Reference Agencies which could improve an individual’s credit score within hours, rather than months – all of which is built into the CanopyGrow credit builder subscription.
Chris Hutchinson, CEO of Canopy, said: “It is astonishing that renters spend so much of their monthly income on rent, yet that is virtually invisible when a credit score is created. It’s just not right.
“A core part of our mission at Canopy has always been simple: to support renters in building their financial health. And our innovative new subscription, CanopyGrow, not only helps renters build their credit score, but it helps them to do it fast. One of the innovations that is being worked into CanopyGrow helps nearly two third (63%) of renters improve their score immediately by an average of 24 points. There is a common misconception that a credit score takes years to build, this is simply not true anymore.
“We have identified ways to uncover and provide additional information to credit reference agencies that allow people to prove that they are trustworthy borrowers who deserve a higher score. Via the Rent Tracking, Clever Credit and Credit Profile services within Canopy Grow, we are boosting scores from day one and actively nudging people to do more to grow their credit score, while providing details of things that could impact their score.
“Our ethos has always been to innovate for renters, but through our work we are also bringing benefit more widely to the housing market, whether that be for landlords or letting agents too. Rewarding a renters’ positive behaviours means they are more likely to be great tenants, so everyone benefits from CanopyGrow.”
Mark Bratley, sales director at Equifax, added: “Now more than ever, renters in the UK are feeling the effects of the cost of living crisis. Canopy has smartly identified a way for tenants to take positive steps in improving their credit scores and their financial wellbeing as a result, something that Equifax shares a strong focus on. Through the key pillars of Canopy’s new subscription CanopyGrow, tenants can see the improvements that such positive behavioural changes can make to their credit scores and in turn, potentially save in interest payments when applying for credit in the future.”
