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What happens if you fail credit checks for a rental property?

(15 Posts)
ilovewelshrarebit123 Sun 28-Aug-16 19:58:58

I currently rent a lovely 2 bed via a private landlord. I've paid a deposit (it's in a scheme) but I had no checks etc

I want to move, I've found the perfect property. Been to see the landlady, and she wants me to have it. But she wants to go through an agency as she said letting rules have changed, she doesn't want to do the corse or have the hassle.

I have a feeling I'll fail the credit checks. What are they looking for? I've never been late with my rent or missed a payment and I've rented for 6 years.

I have been late paying my credit card and council tax though. I know my credit rating is poor I've checked.

I don't want to pay a £150 fee if I'm definitely not going to pass. I think my mum will be a guarantor if I ask her and she has no debt etc

Should I just be honest with landlady and agency, or see what happens.

Any advice would be appreciated.

longtermsinglemummy Sun 28-Aug-16 20:16:00

I'm in a similar position. I think if you don't have CCJs on your record you should be ok. And you also have the reference from your current landlord plus the option of the guarantor. I was naive and thought that my history as a tenant would be all that was needed, but most landlords want the credit reference too. Although they would compromise if you had the option of a guarantor, or offered to pay money upfront or a larger deposit.

Paddybare Sun 28-Aug-16 21:54:00

Rental agencies can only see a very limited version of your credit report. They can only see if you have CCJs or have been declared bankrupt so any late payments/levels of debt etc. are invisible.

Basically, as rental agents aren't lenders, they aren't entitled to view full credit report details. Good luck!

EmpressKnowsWhereHerTowelIs Sun 28-Aug-16 21:59:09

I passed a rental credit check with debts a couple of years ago. As Paddy says, they only wanted to know that I had no CCJs or bankruptcies.

ilovewelshrarebit123 Sun 28-Aug-16 22:33:09

Phew! I've honestly never missed or been late with my rent. I'm going to go for it then, hope I get it as its lovely!

EmpressKnowsWhereHerTowelIs Sun 28-Aug-16 22:34:29

Good luck!

Muddle2000 Mon 29-Aug-16 00:51:07

Crickey Is that all they see when they do rental checks? Sorry to be rude but
I thought they used Experian etc.

NotCitrus Mon 29-Aug-16 05:46:53

I've had checks done for tenants. They confirm the person is who they say, has no CCJs or criminal records, and their income. And almost invariably says they don't earn enough to pass and only to rent to them with a suitable guarantor. Do you have someone who could be a guarantor for you? Any home-owner will usually do, but they could legally be liable for 6 months of your rent if you trash the place and default.

specialsubject Mon 29-Aug-16 11:14:59

Be honest about affordability . btw the agent will check your right to be in the uk, new law.

ilovewelshrarebit123 Mon 29-Aug-16 15:53:38

I can afford it, it's less than I pay now.

I absolutely will not trash or damage the place, my mum will be guarantor but she's retired with no mortgage etc but a home owner.

I'd never do anything that would mean my mum has to pay the rent etc

I definitely have the right to be in the U.K. to.

IceMaiden73 Mon 29-Aug-16 15:57:56

I don't know about the credit check, but I would have thought they would use Experian, or similar

I'm not sure your Mum will be able to be a guarantor unless she has enough income to cover the rental criteria - normally at least 3 times the rent

AprilSkies44 Mon 29-Aug-16 16:05:33

sorry to hijack op
those in the know - would an IVA show up and be a barrier to a credit check for this purpose (for house rental?)

i have a very secure and good job however since my dh and i split it looks increasingly as if i may need to negotiate an IVA at some point in the next 6 months.
i rent currently but its not really suitable - grade 2 listed and very hard to heat etc. id like to look for something else but felt that once my credit rating is buggered ill never pass a check? however if they dont look at full credit record could i be worry for nothing?

ilovewelshrarebit123 Mon 29-Aug-16 16:13:08

My mum has thousands in savings, well over £70k and a monthly pension income to.

I hope I won't need to use her, if they allow tax credits, maintenance and housing benefit I'll be fine.

Roystonv Mon 29-Aug-16 16:13:29

The agent will use an credit referencing company to check your credit rating and they will subscribe to one of the major providers such as Experian however as stated letting agents are not entitled to see your full credit file as they are not lenders. Other references would also be taken up employment and current landlord. Your income would have to meet affordability criteria. If a guarantor is needed they should also have all these checks done on them so the fact that your Mum is retired may be a problem for the income part.

Roystonv Mon 29-Aug-16 16:21:13

X posted, re your Mum most letting agents will not accept savings as income i.e. it has to be regular money coming in - savings once spent are gone and have you checked they will accept housing benefit recipients? Finally, not all agents accept maintenance as income I'm afraid. An agent has a huge responsibility to their client and have to minimize risk as much as possible so these methods are one way of ruling out potential problem tenants. We cannot check for niceness/decency unfortunately. Good luck.

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