Looking to rent, now worried about my credit score.

laurabizzle

Any advice would be greatly appreciated on this:

Obviously, every landlord is different, but I’ve been bouncing a few idea’s around in my head just in case my application is declined and would like some feedback. Do you think offering an increase in the rent we pay (on a monthly basis) would sway a landlords decision on whether to accept a tenant? Or offering to pay another lump sum as an extra to the deposit the month after we move in?
:confused:
Considering that my current landlord has promised to give an excellent reference, and that my job can confirm that I can afford to pay the rent. :rolleyes:

I am unable to pay £4,350 upfront for 6 months rent. I'm guessing that wouldn’t include the deposit, or estate agents fees either! I understand the landlords concerns if my credit score comes back low, but I hope my improved current position as far as money goes and references outweigh this.

If I get accepted for the application/credit check (which costs £161 alone) I then have to pay 1 months rent in advance (£725) plus a month and a half rent upfront as damage deposit (£1087.5) AND to top it all off, the estate agent fee's for drawing up a tenancy agreement are around the £300 mark!! EEK!

pinkshoes

You could always try offering 3 months rent up front? It's such a nightmare getting non paying tenants out that landlords want reassurance that you are going to pay!

Oxford rents are rather pricey, so I'm guessing at £725 a month, it's a 1 or 2 bed flat???

laurabizzle

Thanks for the advice. I completely understand this from a landlords point of view, which is why if I did fail the credit check, I want to anything I can to show them that I can afford to keep up with the rent payments. We may be able to stretch to 3 months rent, but not with a month and a half deposit on top, and fees!! The problem is I have £1150 deposit tied up in my current property, so until I get that back I can only afford what the wages will allow. My lease isn't up until the end of June, and letting agents would want me in the new house at the start of June, so there's a month where I have to wait for the deposit back. My boyfriend keeps telling me to stop worrying about it!!! As it is only a few missed catalogue and a late paid phone bill that are damaging my credit score.... But I like to have a plan beforehand so if we do hit a bump, there’s a backup plan. Women eh? We worry about everything!!

I live in a town just outside of oxford, so the prices are much cheaper. £725 is for a 3 bedroom, link detached house. So not bad at all really! :j

clairet707

laurabizzle wrote: »

Thanks for the advice. I completely understand this from a landlords point of view, which is why if I did fail the credit check, I want to anything I can to show them that I can afford to keep up with the rent payments. We may be able to stretch to 3 months rent, but not with a month and a half deposit on top, and fees!! The problem is I have £1150 deposit tied up in my current property, so until I get that back I can only afford what the wages will allow. My lease isn't up until the end of June, and letting agents would want me in the new house at the start of June, so there's a month where I have to wait for the deposit back. My boyfriend keeps telling me to stop worrying about it!!! As it is only a few missed catalogue and a late paid phone bill that are damaging my credit score.... But I like to have a plan beforehand so if we do hit a bump, there’s a backup plan. Women eh? We worry about everything!!

I live in a town just outside of oxford, so the prices are much cheaper. £725 is for a 3 bedroom, link detached house. So not bad at all really! :j

Laura just to update you on my situation from the other day, my credit check passed even though Im not on the electoral roll at the moment (due to moving around so much in the last 6 months)

If I get accepted for the application/credit check (which costs £161 alone) I then have to pay 1 months rent in advance (£725) plus a month and a half rent upfront as damage deposit (£1087.5) AND to top it all off, the estate agent fee's for drawing up a tenancy agreement are around the £300 mark!! EEK!

Though your letting agent fees are ridiculous!!!

Ours for our new place were £84 each plus VAT for the reference fee and £84 each plus VAT for the contract fee...

Our rent is £770 and deposit is £870

£161 plus ~£300 is crazy - see if you can barter the letting agent down a bit... its not as if doing the contract is a lot of work... (especially as they probably paid abotu £20 for the reference fee)

laurabizzle

I agree, the fee's are RIDICULOUS!! :mad: I rented privately for the past year and only paid £40 in fee's when I moved in. No hassle from my landlord at all like I've had from letting agents in the past and he's been really supportive about us moving. I think as I have already signed the application, I am bound by the fee's should I be accepted. I didn't want to rasie the issue before hand as I am desperate to get accepted for this place.

I'm happy to hear you have had good news, any success stories really lift my hopes at the minute!!

adg1

Hi Laura -

The little missed payments shoudln't be a problem for you getting through the credit checks - they mainly look for CCJs and bankruptcy as others have said. If its just late bill payments etc then you should pass.

Be careful with the lettings agent though - many won't give back any admin fees/holding deposits if YOU fail or pull out of a deal. You'd get them back if the landlord pulls out as its not deemed as your fault.

Also, just be aware that your credit scores can be heavily affected by previous people living at the property - if they had CCJs etc and the debts remain unpaid, then they can often hang around the property as the debtors don't have any new contact details for the old tenants. My old landlord had a bad credit rating at a flat I rented and, though we were perfect credit wise, my wife got turned down for a mobile phone contract of all things.

A lot of lettings agents only look at the major things picked up by credit checking for this reason - it can so often be an issue in rental accomodation. Most will simply base a decision on your current financial situation, employment ref's and a cracking previous landlords reference - if another landlord says you paid on time every time for x amount for months then it is very likely you will continue to do so!

piggeh

I spoke to an agency yesterday who said that, if I failed the credit check then they would ask for a guarantor instead. Although I then changed my mind and decided to houseshare, where I dont get credit scored, so its no hassle

laurabizzle

adg1 wrote: »

Hi Laura -

The little missed payments shoudln't be a problem for you getting through the credit checks - they mainly look for CCJs and bankruptcy as others have said. If its just late bill payments etc then you should pass.

The letting agent has also said this to me, I just worry as 2 payments are not completely up to date until around the end of next week as we are waiting for some money to clear to pay them.

adg1 wrote: »

Be careful with the lettings agent though - many won't give back any admin fees/holding deposits if YOU fail or pull out of a deal. You'd get them back if the landlord pulls out as its not deemed as your fault.

The letting agent has explained this to us, if we did fail we'd lose the £161 we have paid to apply.

adg1 wrote: »

A lot of lettings agents only look at the major things picked up by credit checking for this reason - it can so often be an issue in rental accomodation. Most will simply base a decision on your current financial situation, employment ref's and a cracking previous landlords reference - if another landlord says you paid on time every time for x amount for months then it is very likely you will continue to do so!

I have never missed a payment on my rent EVER. The way I see it, when you have a month where you're a bit short, the most important thing is the roof over your head! Which is why less important things like catalogues and phone bills are the things I have become behind with.

laurabizzle

piggeh wrote: »

I spoke to an agency yesterday who said that, if I failed the credit check then they would ask for a guarantor instead. Although I then changed my mind and decided to houseshare, where I dont get credit scored, so its no hassle

Lots of people have suggested this, I don't know who I'd ask.

Is it true that they have to be a homeowner, or is it based on their income?

adg1

They don't necessarily have to be a home owner though it is recommended. It is mainly based on their ability to pay rent on your behalf. A lot of EAs ask for someone who is earning more than the yearly gross rent, with enough spare for their own rent/mortgage and to live.

Bear in mind that most of the time they will only have to cover a small shortfall unless something drastic happens and you can't afford ANY rent for whatever reason.

It is mainly absed on income, and thair 'chaseability'. This means they have to be UK resident and have a traceable UK bank account.

In answer to your other questions, all my landlords I work with base a decision more on previous landlords references and employment ref's than anything else. The reasoning behind this is as I said - you were a great tenant before and the liklihood is you will continue in the same vain, as YOU won't have changed, just your property.