Credit rating on benifits

ukcarmo

I am in the process of applying for council tax and housing benifit but was wondering if this would effect my credit rating? This may be a stupid question but if anyone knows thanks in advance!

bonnie_2

its got nothing to do with your credit rating.

ukcarmo

cheers just checking

dag_2

Applying for housing or council tax benefit shouldn't affect your credit rating.

If you've actually been awarded benefit but then the council change their mind and decided they've paid you too much - that shouldn't affect your credit rating either. But if you don't pay it back, and don't try to make an arrangement with them - then I think that might affect your credit rating, though I guess it won't make any difference to your credit rating until a judgement has been made against you. You should get plenty of warning that this might happen if there's any possibility of it, it won't be sprung on you without notice.

Is the problem that you're worried about moving, and being able to get into private rented accommodation? Or staying in private rented accommodation that you're currently in? If so - I'd say don't let that put you off applying for benefit. It's true that it can be difficult to move into private rented accommodation in popular areas if the lettings agency thinks you will be dependent on housing benefit to pay the rent - but don't let that put you off applying for it. You really won't be better off in any way if you try to go without.

As a general rule - as long as you pass the credit check - or are able to offer a guarantor who does pass if you don't - then private lettings agencies generally don't care whether you claim housing benefit or not, even the ones that say "No DSS" or "professionals only". But it's best not to say you think you might be dependent on housing benefit when looking for a new flat, otherwise they might think it's a waste of money doing the credit check on you in the first place, and will just flat out reject you.

One flaw with this plan is that these days, lettings agencies tend to charge the search fee back to the tenant anyway, and often require payment upfront for it - and unfortunately, housing benefit won't pay for this. If you have to move because you're facing eviction from your current home, I'd suggest you contact Shelter for better advice.

nickyboy_4

ukcarmo wrote:

I am in the process of applying for council tax and housing benifit but was wondering if this would effect my credit rating? This may be a stupid question but if anyone knows thanks in advance!

My credit rating is good and i've been on benefits for the last few years without any credit problems.