If I don't have a good credit history, am I able to rent a flat in the city?

Question

Ever since hitting 18, I always had a bad credit history and didn't know why, and I really want to move out of my parents house. I'm meant to move in with my boyfriend, but I'm worried that if we apply to let a flat then we'll be turned down because of my credit history!

Ever since hitting 18, I always had a bad credit history and didn't know why, and I really want to move out of my parents house. I'm meant to move in with my boyfriend, but I'm worried that if we apply to let a flat then we'll be turned down because of my credit history! His credit is good though

I am 23 now.

Answer 1

Hi,
find out why your credit history is bad - go to Experian (http://www.experian.co.uk/) or Equifax (http://www.equifax.co.uk/) to find out (if there has been a genuine mistake you can write to them and ask them to attach a letter from you explaining why this has happened and why it's not your fault).

Also - you could uncover some fraud that has been done against you - so that ought to be a priority.

When I rented this house no credit check was done (a private landlord). It depends who you rent through. Some are not rented by Estate Agents - maybe it's worth going through a less formal arrangement (however your rights won't be affected if you do - just make sure you have a proper agreement). Check this out.

Above all though, you must get to the bottom of why your credit history is so bad. You might find your parents' is too - and that it's because of prevous bad debtors at their family home. That can sometimes do it.

Good luck.

If you are in financial difficulty and are in the UK go to the Credit Consumer Counselling Service (based in Leeds) for help. They are brilliant.

Equifax charge £14.95 online to view your report.
Experian - there is a 'free' report, but you probably have to sign up first, for something - check it out.

Answer 2

I am currently asking myself the same question but am being told as long as i can afford to pay the rent,there should be no problems.A guarantor was mentioned but when i questioned this with the agency,i was told you can only have a guarantor if one is requested by the credit company.I also paid a £200 holding deposit of which i was told is non refundable should i fail my credit check.At the end of the day,all a landlords is interested in is if you can pay the rent and if you have been in employment and have good references,i don't see a problem.I am still waiting a reply on mine so will give you a more clear answer next mid week.Also,if you think about how much of the population are in debt but have roofs over there head....there must defo be some leeway then! Good luck x

Answer 3

When you are letting a flat it shouldn't matter about credit history. If you were taking out a mortgage it would be different. What you basically need when letting property is the first months rent say £400 then usually another £400 as a deposit which will be returned to you when you leave the property considering nothing is damaged. Now some landlords/ladies may ask for a reference usually from your employer, and a letter from your bank basically stating that you shall have sufficient funds in your bank to pay the monthly rent. This sounds alot i know but if you have sufficient funds to let the property then your credit history need not be consulted.

Answer 4

Really depends on if the landlord is willing to take a risk. I just took on a young lady who had disputes with her previous landlord and had rent arrears. She's been ok for the first month. It's really down to you to sell yourself here, have a couple of months rent in advance and a decent bond if at all possible. Then make sure you pay your rent on time. At the end of the day your landlord can keep your bond if you get into arrears, so it's a risk for you both. You need to come across as trusting and honest, everyone goes through a bad patch, which escalates and you end up getting into debt, it can be put right if you try hard enough. Try getting a letter from your parents as guarantors too that would help, if they are willing to do that. Anyway happy house hunting and good luck. xx

Answer 5

A lot would depend on who you're considering renting from.Some would just accept things the way they are,where as some would do a credit check.
If you and your boyfriend are able to put down a sizable deposit,that may go in your favour.
Why don't you try Expedian,to see why your credit rating is so poor,that may give you some good answers and help you out later on.

Answer 6

It doesn't mean you wont get one but they may require what is called a 'Guarantour' this is somebody that will back you up and promises to pay on your behalf you you ever miss a payment. If you don't have anyone that will do this for you perhaps you should leave your name off the form or rent somewhere privately. If you go for the latter be vary carefull, there are a lot of landlords that will try to scam you out of your deposit when you leave. Make sure you take lots and lots of photos of the place before you move your stuff in listing any marks & defects to the property. Keep a copy for yourself and give on to your landlord/lady.

Good Luck!!

Answer 7

It is odd that you do not know why you have a bad credit history.... Have you looked at a credit report? Is there anything you can do to improve it?

You can rent a flat but it will be harder - better chance if you avoid agencies and go directly to a private landlord who will not do so many checks.

By the way, a guarantor does not need to be earning 3 times but needs to be a home owner. I work in housing and have had guarantors who are retired or who are simply home owners - they just have to have some guarantee that they will cover your rent should you default. Obviously this would only be valid until the tenancy runs out.

Answer 8

ive never been asked for credit history when renting a flat, the most they look for is references and that you're currently employed. Also they take a securiy deposit so if you cant pay rent then you prob wont get this back...but no credit history and if a place does... well just find somewhere else that doesnt-there'll be plenty dont worry Good luck.

also have you paid off all your debts?, cos when you do your bad credit history should be removed

Answer 9

Depends on a number of things.

How much rent are you looking to be paying out? Average 1 bed flat £400 - £450 per month (depends where you are in the country, it could be way more.)

Most letting agencies will do referencing through a reputable company who will look at the affordability. Usually the required income is 2.5 times the rent being charged so if your boyfriend is earning around £1125 per month (gross) or £13,500 per year the referencing can be mostly based on him which makes your history less worrying.

If your boyfriend doesn't earn that you may be able to use a guarantor who will usually need to be earning 3 times the rent.

If your boyfriends income is low and you don't have a guarantor be honest about your concerns with the letting agency. If they know their stuff they will be able to point you in the direction of Landlords who are more lenient so even if you do have a low credit score they may still be willing to let to you.

Answer 10

Yes is the answer, you will have no trouble renting due to your credit history. I am involved in housing, attend Landlord forums etc. and have yet to come across a Landlord that did a credit check. Nearly all private Landlords will ask for a rent deposit or bond, plus a months rent in advance. 85% will pursue references either from your employer or previous Landlord if applicable. If you can provide the bond, months rent in advance and references you will have no trouble at all.

Some letting agents do credit checks but they only act for a small percentage of Landlords - just avoid the Agents who do credit checks. By the way just be warned - letting agents have all sorts of add on fees - like charging you up to £125 for 'administration costs' in setting up the Tenancy Agreement. In reality it is a pro-forma document costing nothing. The ones that do credit checks charge YOU for the privilege (none refundable if it is negative) even though it is to protect THEIR client. Avoid letting agents is my advice and deal with Landlords direct.

Good luck!