If I take out a loan, will it affect my ability to rent a house in the future?

icbmad

I am thinking of taking out a £7,000 loan towards a new car, to repay back over two years. Is there a complication when it comes to renting a house out?
Thanks

thriftymomma

As long as you make your payments in full and on time I see no reason why it would. Rental credit checks are more for verification rather than affordability I think.

icbmad

Thanks for your reply thriftymomma.

This is the first time ive ever considered taking out a loan and I'm worried if it's going to bite me back in the future. anything that i should watch out for?

chrisb1983

It will bite you, if you fail to keep payments on it, but actually the opposite if you pay on time every time. It will increase your credit rating and therefore increase the chance of acceptance with a landlord who runs a credit check on you.

jonesMUFCforever

The only problem I see is , a potential landlord asking your bank for a reference and the reply coming back that you are fully committed (ie paying the loan back and the monthly rent) - this might be a problem.

Depends on your income and expenditure - what % of salary would the loan and typical rent in your area be?

~Brock~

jonesMUFCforever wrote: »

The only problem I see is , a potential landlord asking your bank for a reference and the reply coming back that you are fully committed (ie paying the loan back and the monthly rent) - this might be a problem.

Depends on your income and expenditure - what % of salary would the loan and typical rent in your area be?

My god - do those type of bank references still exist?

'Reliable and trustworthy and good for the purpose of your enquiry' and all that?

I thought they died out at the end of the 80's, when banks stopped communicating with each other and started actually competing :rotfl:

cyril82

~Brock~ wrote: »

My god - do those type of bank references still exist?

'Reliable and trustworthy and good for the purpose of your enquiry' and all that?

I thought they died out at the end of the 80's, when banks stopped communicating with each other and started actually competing :rotfl:

Oh they still communicate, going back a few years (6 or 7) i decided to open a new bank account with RBS, i got a trainee which i didn't mind, he had no idea what he was doing and had to keep leaving the room to ask his boss but i'm a patient guy and was not in a rush that day.

In the end he got it done, i was a bit miffed when i got my bank card through as it was a cash card and not a debit card but i usually carry and pay for things in cash so no big deal.

fast forward 2 years or so of having my (pretty good) wages paid into the account and having no adverse credit i strolled into the bank to enquire about a loan, i was shocked how quickly the woman on the enquiries desk refused me..(as soon as she brought up my account details), what was on there?? :eek:

Well, the woman was very polite but i just didn't understand what she was trying to tell me, "it's to do with your account sir"....what’s up with it??
"you know because of the type of account you have sir"....what kind of account do i have??

In the end i blurted out, look love, i have no idea what you mean you will have to spell it out...imagine my shock when she replied "it's because of your bankruptcy sir".:eek::eek::eek:

i wasn't bankrupt and i told her so... but, after first giving me a look like she didn't believe me she said i'd have to come back with by credit file and have a meeting with the bank manager to prove it, a little angry i replied, how about instead of wasting my time fixing your mistakes i just withdraw my money and close the account... which i did, i still had an account at Barclays so deposited it there.

Then as time passed i started to wonder why banks were refusing me every time i applied for a loan or credit card, i had good credit, then i applied for a joint account at Halifax who said they would check with other banks and had me or my partner ever been refused a bank account that kind of thing, well we hadn't so we said no, so the woman went through loads of paper work before going off to do her checks, she came back, clearly annoyed and asked me rather forthrightly why i had not disclosed my bankruptcy..we were on the top floor of a high building and i just felt like opening the window and screaming to the world....I AM NOT BANKRUPT!!!:mad:

IN the end i had to get my credit file, make an appointment to see the bank manager at RBS where i no longer banked nor wished to bank and where i had closed my account more than 2 years ago and prove to them that i was not a bankrupt just so they would stop telling other banks that i was.

That went on a bit sorry but that's my story on how i know banks do still share info and give references to each other.

~Brock~

cyril82 wrote: »

Oh they still communicate, going back a few years (6 or 7) i decided to open a new bank account with RBS, i got a trainee which i didn't mind, he had no idea what he was doing and had to keep leaving the room to ask his boss but i'm a patient guy and was not in a rush that day.

In the end he got it done, i was a bit miffed when i got my bank card through as it was a cash card and not a debit card but i usually carry and pay for things in cash so no big deal.

fast forward 2 years or so of having my (pretty good) wages paid into the account and having no adverse credit i strolled into the bank to enquire about a loan, i was shocked how quickly the woman on the enquiries desk refused me..(as soon as she brought up my account details), what was on there?? :eek:

Well, the woman was very polite but i just didn't understand what she was trying to tell me, "it's to do with your account sir"....what’s up with it??
"you know because of the type of account you have sir"....what kind of account do i have??

In the end i blurted out, look love, i have no idea what you mean you will have to spell it out...imagine my shock when she replied "it's because of your bankruptcy sir".:eek::eek::eek:

i wasn't bankrupt and i told her so... but, after first giving me a look like she didn't believe me she said i'd have to come back with by credit file and have a meeting with the bank manager to prove it, a little angry i replied, how about instead of wasting my time fixing your mistakes i just withdraw my money and close the account... which i did, i still had an account at Barclays so deposited it there.

Then as time passed i started to wonder why banks were refusing me every time i applied for a loan or credit card, i had good credit, then i applied for a joint account at Halifax who said they would check with other banks and had me or my partner ever been refused a bank account that kind of thing, well we hadn't so we said no, so the woman went through loads of paper work before going off to do her checks, she came back, clearly annoyed and asked me rather forthrightly why i had not disclosed my bankruptcy..we were on the top floor of a high building and i just felt like opening the window and screaming to the world....I AM NOT BANKRUPT!!!:mad:

IN the end i had to get my credit file, make an appointment to see the bank manager at RBS where i no longer banked nor wished to bank and where i had closed my account more than 2 years ago and prove to them that i was not a bankrupt just so they would stop telling other banks that i was.

That went on a bit sorry but that's my story on how i know banks do still share info and give references to each other.

The old system that I am referring back to (probably only remembered by old codgers like me) was a series of standard replies that went from 'undoubted for the purpose of your enquiry' to 'good for the purpose.....' all the way down to 'unable to speak for the purpose of your enquiry'.

Part of my day used to be dealing with such enquiries and taking them through to the manager to get the benefit of his reply. This was before the days of shared credit data. I really don't think that this still exists in today's technological world.

I am talking about an age when nobody would have known if you were bankrupt even if you where!!!........not that anyone did actually go bankrupt over credit back then!

cyril82

~Brock~ wrote: »

The old system that I am referring back to (probably only remembered by old codgers like me) was a series of standard replies that went from 'undoubted for the purpose of your enquiry' to 'good for the purpose.....' all the way down to 'unable to speak for the purpose of your enquiry'.

Part of my day used to be dealing with such enquiries and taking them through to the manager to get the benefit of his reply. This was before the days of shared credit data. I really don't think that this still exists in today's technological world.

I am talking about an age when nobody would have known if you were bankrupt even if you where!!!........not that anyone did actually go bankrupt over credit back then!

Ah, well perhaps a little before my time, but my example maybe shows that they do still give refrences to each other, just in a more modern and technological way where they can find out you are bankrupt, even when you're not......gotta love technology.

NoreenOMS

cyril82 wrote: »

Oh they still communicate, going back a few years (6 or 7) i decided to open a new bank account with RBS, i got a trainee which i didn't mind, he had no idea what he was doing and had to keep leaving the room to ask his boss but i'm a patient guy and was not in a rush that day.

In the end he got it done, i was a bit miffed when i got my bank card through as it was a cash card and not a debit card but i usually carry and pay for things in cash so no big deal.

fast forward 2 years or so of having my (pretty good) wages paid into the account and having no adverse credit i strolled into the bank to enquire about a loan, i was shocked how quickly the woman on the enquiries desk refused me..(as soon as she brought up my account details), what was on there?? :eek:

Well, the woman was very polite but i just didn't understand what she was trying to tell me, "it's to do with your account sir"....what’s up with it??
"you know because of the type of account you have sir"....what kind of account do i have??

In the end i blurted out, look love, i have no idea what you mean you will have to spell it out...imagine my shock when she replied "it's because of your bankruptcy sir".:eek::eek::eek:

i wasn't bankrupt and i told her so... but, after first giving me a look like she didn't believe me she said i'd have to come back with by credit file and have a meeting with the bank manager to prove it, a little angry i replied, how about instead of wasting my time fixing your mistakes i just withdraw my money and close the account... which i did, i still had an account at Barclays so deposited it there.

Then as time passed i started to wonder why banks were refusing me every time i applied for a loan or credit card, i had good credit, then i applied for a joint account at Halifax who said they would check with other banks and had me or my partner ever been refused a bank account that kind of thing, well we hadn't so we said no, so the woman went through loads of paper work before going off to do her checks, she came back, clearly annoyed and asked me rather forthrightly why i had not disclosed my bankruptcy..we were on the top floor of a high building and i just felt like opening the window and screaming to the world....I AM NOT BANKRUPT!!!:mad:

IN the end i had to get my credit file, make an appointment to see the bank manager at RBS where i no longer banked nor wished to bank and where i had closed my account more than 2 years ago and prove to them that i was not a bankrupt just so they would stop telling other banks that i was.

That went on a bit sorry but that's my story on how i know banks do still share info and give references to each other.

Just out of interest, did you find out what actually happened here? Did the trainee put some incorrect notes on your account or something?

cyril82

All it was, apparently they have a special account they give to people who have been declared bankrupt, all the usual things you'd expect, no debit card or check book that kind of thing but by having one of these you are never eligible for any credit.

The trainee had mistakenly opened my account up as one of these, so therefore, in the eyes of RBS i was now a bankrupt. And this is what they told anyone who enquired with them.

thankfully i got it cleared up. Eventually.