Are you worried about whether bad credit could stop you from renting a property? This is a big concern for many people looking for new accommodation in the UK. In this guide, we’ll be taking a look at the relationship between bad credit and the rental market, and tell you what you can do if you think poor credit is getting you turned down by landlords and agencies.
Overcoming Problems with Bad Credit When You’re Renting
Bad credit can make it hard for you to be accepted by some landlords. It can make landlords and agencies think you won’t be able to pay your rent on time or in full. If you do have bad credit and want to rent a property, you may have better luck if you approach landlords directly instead of using formal agencies. This is because private landlords tend to be less rigid. Some private landlords don’t even run credit checks if tenants can show that they have a steady income.
Finding a Private Landlord
If you want to rent directly from a private landlord instead of an agency, you can look at classified ads both on and offline. Just remember to stay vigilant. If something doesn’t feel right, it’s best to look at another option. Ask as many questions as you feel you need to and meet the landlord in person if you can before you agree to anything.
What Can I Do if a Private Landlord Turns Me Down?
If a landlord says they don’t want to accept you as a tenant because you have bad credit, you could offer a few months of rent in advance. Landlords and letting agents can ask for up to 2 months’ rent as a deposit upfront. If you’re able to pay the maximum deposit upfront, this may help you secure the tenancy that you want.
How to Prove that you Have a Stable Income
Showing that you have a steady income and are in employment can work very well when it comes to renting with bad credit. Provide evidence like recent payslips and your employment contract to try and put your potential landlord’s mind at rest when you want to rent a property with bad credit. Although not everyone has this option, you could ask a friend or relative to act as a guarantor. This means they will agree to pay your rent on your behalf if you can’t.
Can My Local Authority Help When I Want to Rent with Bad Credit?
Your local council may be able to help when you want to rent a property with bad credit. Some councils have bond guarantee schemes that help people to pay their deposits. You may be able to pay this back in instalments over time.
You might be able to get help from your local council if you want to find a good, reliable and trustworthy landlord. Some local authorities have lists of accredited landlords that you can contact directly to ask about tenancies. You could also rent a property from your local council or housing association. Just bear in mind that their waiting lists can be quite long so you may need to wait a while for the right opportunity.
How to Improve your Credit
Taking steps to improve your credit score and deal with your debt can help you avoid future problems. Things you can do include using a card designed to help you improve your credit score. Try to always make your repayments on time and don’t apply for new debt if you can avoid it. If you do have any credit, try to use as little of it as you can.
What Credit Score Do I Need to Rent a Property in the UK?
There is no minimum credit score you need to meet to rent a property in the UK. However, you’re more likely to have problems if you do have a low credit score. Maybe you don’t know what your credit score is? If not, find out as soon as possible so you know where you stand. Some credit agencies let you check your score for free.
Does a Landlord Need My Permission to Run a Credit Check?
Yes. A landlord can’t run a credit check on you without asking you first. Running a credit check can be expensive. This is why some landlords don’t carry them out, especially when people give them enough evidence to suggest they’ll be paid on time.
What Can I Do if a Landlord isn’t Happy with my Credit Score?
If a landlord is put off by a poor credit score, there are some things you can try to convince them to take you on. Explain why you have a poor score, ask if there is anything that you can do to put their minds at rest and give them enough evidence to support your case as quickly as you can.
Why Might a Landlord Run a Credit Check on Me?
A landlord might run a credit check on you to make sure you are who you say you are. They may also carry out a check to find out if you have any County Court Judgements (CCJs) or have ever been made bankrupt. A credit check also tells potential landlords about your address history. If you have moved around a lot, this might worry them. Explain to your landlord why you have relocated so much if this is the case. Getting a good reference from an ex-landlord can give them confidence that you’ll be a good, reliable tenant.
Conclusion
Getting a tenancy with poor credit can be hard, but it’s definitely not impossible. Approaching private landlords directly instead of agencies can make things much easier for you, but taking steps to improve your credit score can help you to get accepted no matter who you want to rent from. Many people have been able to find the right accommodation even after a big drop in their credit score.
