Will adverse credit history stop me renting a house?

Metal_Guru_2 · 10 February 2011 at 2:59PM

Hi, has anyone experience of renting a house with an adverse credit record?

I started on a DMP via the CCCS in August 2010 with total debts of around £50,000. It has gone really well and I am able to manage my personal finances far more responsibly than I have for years. I am in rented accommodation and have been given notice as the landlord wishes to sell. When I find a new property to rent, the letting agent will inevitably run a credit check. I am terrified that I will be considered an 'unsuitable tenant' and won't be able to rent anywhere because of my adverse credit record, even though financially I am in the most secure and stable position I have been for years thanks to the CCCS. I am in secure well-paid employment with a regular income and could provide references from my employer, bank and current letting agent - but we seem to live in an age of 'computer says no'. Has anyone been through this or know enough about it to give me any advice?

A second question, I currently live alone but there's a chance I could end up sharing with someone else (would certainly be cheaper...). What would we need to do to ensure that their credit record is protected and not associated with my adverse history?

Thank you so much kind people...

lvm · 10 February 2011 at 3:28PM

Hello,

With regards to living with someone, there's no reason whatsoever that their credit would be adversely affected because of your credit history - credit information is applied to people rather than households although there are quite a few people who think it's got to do with who you live with. As long as you don't go and get yourselves joint accounts to pay bills from etc you and your potential flatmate will be fine.

There are a lot of letting agents who do credit checks (and charge you for the privilege!) but others don't. It would depend on how long ago you defaulted on your accounts (I'm assuming you did default...) if you would be successful or not.

Letting agents actually charge landlord an arm and a leg for their services (usually 15% average) so you might find it cheaper looking for a private let (try Gumtree) as the landlord will save on the extortionate fees.

I know from when I worked in a Property Management company that when someone was unable to go through a credit check (usually foreign students), we asked them to pay their first months rent as standard but also their last 2 months as a stronger security as well as their deposit.

Hope that helps!

dancingfairy · 10 February 2011 at 3:31PM

I believe some estate agents will accept guarantors or even 6 months rent up front but this is not likely to help you is it? your best bet from what I have heard is probably renting privately.
df

Pott5y · 10 February 2011 at 4:16PM

As has been previously posted on this forum by an experian company representative, when LL's do credit checks, they have no access to your personal credit files. I quote from James Jones experian company rep

"Landlords and letting agent cannot look at your credit history, just the public record data on your credit report such as court judgments and bankruptcies. So as long as you have none of those you should be fine. They might also check your name and address on the electoral roll.

Only lenders can carry out full credit checks, which they usually build into a credit score. The score you can get from Experian is a guide, as lenders' scores will vary. Landlords do not calculate credit scores - they're simply checking that you have no accute financial problems.

James Jones"

More to the point is can you afford the rent. I was informed by my letting agent that if you earn more than 2.5 x the rent you should be ok.

For your peace of mind I had been on a DMP for over 6 years and I managed to rent via several LA's very successfully with no restrictions.

Good Luck

Pottsy

Metal_Guru_2 · 10 February 2011 at 4:24PM

Thanks Pottsy, that's extremely helpful and reassuring. I don't have bankruptcies or CCJs but, as a matter of interest, do you know whether default notices are public data/'visible' on a landlord check?

Pott5y · 10 February 2011 at 4:27PM

They are not. Only authorised banks and financial institutions doing a full credit check will see defaults and late payments.

Pottsy

BigCraigJohn · 10 February 2011 at 4:41PM

In my experience they will only see bankruptcy, ccjs and to check your id. They will probably want to see proof of income and might do a reference check with your employer. I was self employed so was unable to proove income, luckily my housemate earns enough to cover the guarantee on the whole house and he trusts me enough to pay my share.
If you fail they will ask for a guarantor.

Scotchkris · 16 March 2012 at 11:18PM

As sid above the credit checks carried out when renting a place are only looking for CCJ's and bankruptcies. I have a CCJ still showing on my credit file although it's been paid found a lovely place at start of week that myself and partner fell in love and wanted. So we told the landlord our situation that I'm self employed haven't done a full tax year, we have a guarantor, I have a CCJ and offered the 6months and deposit up front and he accepted our offer so there is still hope out there no matter what your situation is, our landlord isn't fussed about the fact I have a CCJ although is is paid off

cniac200 · 4 March 2014 at 8:35PM

Hi,

I appreciate this is an old thread but I'm in a similar position.

I've just been informed by LA that I will be credit checked by a company called MARAS.

I have a few defaults from a few years back. Will MARAS be able to see these or can they too only see CCJs and babankruptcies?

Advice, particularly from someone in the profession would be greatly appreciated.

Thanks

Will adverse credit history stop me renting a house?

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