Letting agency credit checks

Qualcuno

I'm in the referencing process to rent a flat through Ludlow Thompson. They've said that I need a guarantor to go ahead with the rental. The first person I spoke to about it said that it was just because my flatmate hadn't entered her details yet, and that the combined income would be sufficient. However, another employee has now told me that in fact I failed a credit check.

I've been in contact with the credit agency that they use, and there's nothing at all on there that looks dodgy - a credit card, couple of current accounts, couple of utility accounts, all with rows of green ticks. no recent applications, on the electoral roll.

Ludlow Thompson refuse to give me any further information apart from that I had a "low credit score". What should I do?

Thanks

Fire_Fox

Have you looked at the data held on you by all three credit reference agencies? It's your file you can ask to see it under the Freedom of Information Act. Would suggest you request further information in person or in writing not by telephone or e-mail, as the letting agency may feel the need to be cautious given data protection legislation. They may require each flatmate to have sufficient income to cover the whole rent as you are "jointly and severally liable" in a joint tenancy.

Qualcuno

Fire_Fox wrote: »

Have you looked at the data held on you by all three credit reference agencies?

They told me that they use equifax so I've just got that report at the moment. I really can't see what their problem is...

Fire_Fox wrote: »

They may require each flatmate to have sufficient income to cover the whole rent as you are "jointly and severally liable" in a joint tenancy.

They seem to be pretty sure that's not the problem, they just tell me now that my score is below the cut-off, and that they don't receive any information from Equifax apart from this score.

Asking for information in writing might be a good idea, but they do claim not to have any other information. I spoke to a third person at Ludlow Thompson, and they said that if I sent a copy of my full Equifax credit report to the person who originally said my rating was too poor then this might help. I've done this and I'm waiting for a response, but I'm not optimistic.

LoopyLuna_2

I had exactly the same problem a couple of years ago,but I got all the credit checks back and 2 of them were fine but one had a awful rating (due to a mess up at the bank that they had forgotten to tell me about).I challenged it and got it reviewed and changed, so all =]. I have also heard of letting agents that only take A scores, if they are a bit unsure of whether you can afford the place (Im not sure its 100% legal for them to do it but).
If you checked it and nothing seems out of the ordinary,walk away. Chances are that if they are being this funny about you renting the place, they are only going to cause more problems than they solve (this is not always the case but sometimes).
My advice challenge anything out of the ordinary on the scorings, you can get this removed if its incorrect.
Goodluck

princeofpounds

Ok, first of all there is no such thing as a standard credit check. Whether your credit is good or bad is a totally arbitrary decision. Ultimately it is only the landlord, not the agent, who decides, but they will often rely on advice from the agent who will likely have their internal criteria.

You can fail a check for the obvious stuff like missed payments, but if you have none of these then it becomes a question of insufficient positives. A couple of possibilities come to mind.

The first is that you have no significant credit record at all. Based on what you have said that doesn't seem likely either - it's not like you should have to prove much more than an ability to make payments.

The second is that you aren't considered to have enough income to cover the rent. This isn't strictly a credit check, but is often checked as part of the same process. This is a distinct possibility in this case, as you seem to be the only person submitting for checking on a property that two of you are meant to be inhabiting. You don't expicitly state if they looked at this factor but given the first comment you received it might explain something.

If I were you, I would go to the office, corner the relevant person and ask them to explain what they mean by low credit score and specifically where the deficiency was. Take your record from the credit agency itself. Ask them if it is a case of not managing enough credit products or whether it was earnings, or something similar. Ask them if the credit agency, they or the landlord made the final decision.

My money is on the earnings personally.

If you still aren't proceeding anywhere, you might wish to get the landlord's address from the land registry, write direct and state that you want to let the property but are having an issue with the agents that they won't take the time to explain to you.

paulofessex

Sounds to me that they were trying it on. Do they really run a credit check? I reckon they ask for a guarantor from each and every potential tenant. I really wouldn't have given them a copy of my credit record.

LoopyLuna_2

also the thing is if they are really giving you that much grief now, what do you thinks going to happen with getting the deposit back. There are some very good letting agents and some very bad ones out there. Don't be taken for a ride. Princeofpounds is correct upfront honest and dont let them wiggle out of it.