Renting with v bad credit

[renthelp]

Hi,

Been looking for rental property for quite a while now, so many others looking and suitable houses are few and far between.

We are a young working family with 2 young children. Both working average but secure long term jobs. However we both have bad credit, back from when we were freshly 18yp and made stupid mistakes. I have one unpaid CCJ and my DP has a paid CCJ.

We have managed to secure one of the first viewings on a perfect house with a private landlord tonight. It will be the landlord directly we are meeting. I can say with 99% certainty we will want this house.

What chances do we stand with the bad credit, it's terrible we can't even get a phone contract between us. However we have never ever missed a rent payment before, our bills now are all paid on time, we can supply a guarantor and references from past LL and however many months upfront rent they would take. DP wages alone cover 3x annual rent, so with line added covers even more.

I've read online most private landlords do still perform credit checks so this has really worried me. I plan on going and being completely honest and upfront with her about our bad credit history but what chances do we stand? If you were a private LL would you let to us?

Sorry few spelling errors there

Hi OP,

We're looking for new tenants for our flat privately through openrent at the moment.

The market is insane - it's been a full-time job for me since we listed on Saturday to manage the enquiries, over 150 so far. We will do viewings with 30 possible applicants and see what shakes out...

We will be credit checking our applicants and I expect we wouldn't rush to go with tenants who fail the checks, if there are others offering the same who pass them.

It's a massive risk giving someone keys to your home! So you want to trust they can handle themselves and thier money well, IYSWIM.

I cross my fingers that it all works out for you guys, but if I were you I'd try to get some advice about how to improve your credit scores - if you have income to throw at it my understanding is that you can improve them considerably in 3-6 months? It's not helpful to you right now but will help with your next move!

Best of luck x

@WoolyMammoth55 thanks for the honest response. This is through open rent too. I read about their referencing process and I just know we won't pass it it's so depressing.

We know what we need to do to improve our scores and we are doing but it will take a significant amount of time before it's where it needs to be. We could buy if it wasn't for the scores, deposit isn't an issue.

I'm really hoping this landlady can see we are good people and will look at other options however I fully understand this is her house and her livelihood so I don't hold out much hope.

I agree with Wooly. I too, just rented out through Open Rent and had a huge amount of enquiries. Unfortunately due to it being an extremely difficult and long drawn out to evict a non paying/problematic tenant - Shelter and the like have done more harm than good for tenants - LLs will generally go with the safest bet. It's a business decision. Councils telling (often non paying tenants) to sit tight and wait until the bailiffs turn up have also made matters worse for tenants in the overall picture.
As above, research ways to improve your credit rating. There is good advice out there on how to do this.
Good luck. You will get there.

Thanks @20questions it's our own doing. Really wish I could turn back time. They really really need to start drilling this stuff into kids at school, I wish I was taught how to buy/rent a home, manage money etc rather than some of the crap I had to learn.

Will still go to the viewing tonight and see what is said, if nothing materialises then we will stop looking, put our full focus onto the credit rating improvements and suck it up. We could really do with moving house sooner rather than later but it looks like it won't happen for us.

Do you both think even if we offered 6 months upfront it would still be a no? Could maybe even offer more if they wanted it.

It also puts the fear of god into me if our current landlord ever wants this house back / sells up / just wants us out. I actually don't know what we would do!

6 months up front wouldn't necessarily cut it. Depends if there's a lot of competition for the property..
Best thing to to is meet LL - meeting in person is really helpful and they may just feel a good vibe from you. Be very honest!
What may make a huge difference is if you could offer a solid guarantor (usually has to be a home owner) because that would increase LL feeling of financial security.

@20questions yes we have a choice of 2 garuntor we can offer too, both home owners.

I'm a landlord, but I never use conventional credit checks. What I do tend to ask for is 3-6 months bank statements. These tell me way more than an Experian check. Plus gut feeling - I interview tenants and listen to my gut. I've never had anyone default on the rent.

What I would suggest you do is to bring copies of the following:

• at least 3 months bank statements
• proof of the savings you'd use to pay the deposit plus 3-6 months rent in advance
• your contracts of employment and/or as many P60s you can lay your hands on
• credit checks relating to your guarantors

I don't know whether you'd get a chance to actually show these at the viewing, but just showing that you have documentation might result in you being seen as serious contenders.

Plus obviously dress the part and treat it as you would a job interview. Good luck!

@FlowerArranger

Thanks, we just got back. It was the perfect house for us too. She said she liked what I wrote in my message when requesting a viewing, was going really well but as soon as I mentioned the bad credit I saw her face drop a bit which is understandable; it's her mortgage that needs to be paid at the end of the day. I did mention garuntor, rent upfront etc so she is aware of what we can offer.

She has a few more viewings then says she will be in touch but I'm not holding out much hope really, why would anyone pick us over someone with the green light from the credit agencies

Chase her up with a really well worded text/email saying how much you loved the house..how perfect it would be for you..how well you would look after it etc and remind them that you have a home owning guarantor. Follow up communication will make you stand out among the possibly many other viewers!

I agree with previous poster, follow it up with a text so you are in her mind.

I had bad credit a few years ago and paid 3 months upfront and it wasn't a problem.

Fingers crossed for you op

I agree with the two PPs. In your email, tell her about your jobs, how long you've worked there, mention how much you have in savings, and the guarantors. Include a list of the financial documentation you'll be able to provide.

Such emails can sway a landlord. When we were buying our most recent home, we were in a race with another prospective purchaser. It was our email to the vendors that made them choose us.

I'm a ll and I'd consider you if you offered slightly over market rent, a few months upfront, I got a good vibe, and you told me all about why you're credit score isn't ideal.
I'd chat with landlord and be really upfront, all the paperwork is a good idea too.
As a ll I'd be more interested in your references than your credit score, as long as I got a really good feeling about you.
Best of luck.

Sorry I've only just checked back here but I already had followed it up with a little message thanking her for her time and our situation etc and she's agreed to do referencing for a garuntor wooo! Now just to make sure my dad fills all the stuff in properly I'm hoping as long as he comes back fine that means she is going to let to us. Fingers crossed.

Oh good luck 🌷

Honestly, no, I probably wouldn't. It's such a hard process to get a tenant out who defaults, and a LL has to carry that cost from money that could cover their own living expenses, so it's too big a risk.

Having said that, it depends. If you are 30 and this was when you were 18, and you can provide good references for the past few years, I might give you a chance.

When there's a lot of people looking to rent, I think it's natural that most LLs will go for the safest option.

Good luck OP. I hope you find a place and can build up a better history to help you in future.

I do hope things work out OP, but I'd actually be suspicious of someone offering 6mths rent up front. I'd think 'they will turn my house into marijuana farm!!!' I've clearly seen too many of those sheriff/eviction programs, but I'd be a bit worried.

I'm not familiar with paid and unpaid CCJ's, but how long do they stay on file? If you were both 18 when you got them, surely some time has passed since then? Have you applied for your own Experian and other credit check reports to see what is on file? They cost about £2. You might see where you can improve things. Have you spoken to citizen advice or have a debt management company helping you?

@MarmiteCoriander wish I had a weed farm, would be able to buy a house outright 🤣

They stay on 6 years. The debts are from things we did at 18 years old but the ccjs didn't come until a few years after so they are still on the file unfortunately. We will see what happens hopefully my garuntor goes through ok

Have you paid the CCJ ? That would help things significantly in terms of cleaning up your credit record. I know of people that have had three or four CCJ’s, as long as they’re cleared they’ve been able to buy.

WE GOT IT she liked us and wants to give us the chance. I'm so pleased!

That’s brilliant 🤩

Excellent news!

Amazing news, congratulations!

Excellent news!! So happy for you 😀