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

[ilovewelshrarebit123]

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.

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.

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!

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.

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!

Good luck!

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

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.

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

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.

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

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.

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.

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.

Hello, just joined here. Please anyone know if I do have an insolvency file which is OK I think, do the landlords have the right to refuse me if I want to rent? Or agencies? I am looking to change house as I cannot afford this one is too expensive for my budget. My husband left me after 25 years of marriage and put me in the big debt. I had to apply for IVA to pay all these. And now I have to find a house that match with my budget. I do not have anyone to be my guarantor. So the only thing is to see if they accept the increase deposit and that depends if I can afford as well. Life is hard sometimes, specially when you realise that you've been cheated after quarter of Century and you don't know why, with no explanation, and only fault is that I put everyone first except myself. I did do a credit check (free) on my own and it shows over there all the debts. Is what they can see as well? God help me go through this.