*Netflix and Spotify subscriptions could help first-time home buyers boost their credit scores to get a mortgage.
Regular debit payments to streaming apps and utility companies can help borrowers improve their credit scores. Experian allows you to link the Netflix service through its Experian Boost tool, which reports the payments to the bureau, Uproxx reports.
Here’s how it works, per the company’s website: “Experian Boost is an easy way for you to take control of your credit and build long-term credit health—just by paying your bills. When you connect your bank, credit card or service provider to Boost, we’ll look for bills with positive history that you can add to your Experian credit file. It could also instantly raise your FICO® Score!”
A bank in the UK called Leeds Building Society has partnered with Experian Boost to help first-time homebuyers, according to The Independent.
“This will particularly help younger borrowers, first-time buyers and anyone on lower incomes who face the toughest challenge to prove their ability to repay,” Richard Fearon, Leeds Building Society’s chief executive, told the publication.
“Often through no fault of their own, these groups can struggle to build a good credit score because they need to spend most of their earnings on rent and other regular payments,” he added.
The announcement comes as another UK-baed bank, Skipton Building Society in Yorkshire, launched a no-deposit mortgage program.
“We recognise there’s a clear gap in the market for people who have a strong history of making rental payments over a period of time so can evidence affordability of a mortgage – but there is currently no solution for them to buy a property due to lack of savings or access to family wealth,” the company’s Charlotte Harrison said.
“It is time for a re-think on these massive barriers to home ownership, and we’re proud to take the lead on bringing to the market, solutions for such a massive social problem.”
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