Renting and tenant checks

summereeyore

Hi, I've just signed up to rent a flat with my boyfriend, and we're waiting on the references to come back, one of which is a credit check.

I'm signed up to Experian Credit Check and my score there is around 850 which is catogorised as 'Fair' and I was able to get a credit card a few months ago without any problems.

Out of curiosity I checked my score on Equifax and was shocked to see that my score there was 'Very Poor'. The information they both hold looks the same so I don't understand why the rating is so different. I have defaulted in the past (5 years ago on £200 when i was a student which was satisfied in full), and apart from that have always paid repayments on time. I know I have quite a bit of debt on the cards (£4000) but I always pay more than the minimum repayments each month and always on time.

Now I am worried that, depending on who the reference agency - LetRef - use, my credit check is going to come back badly and we may not get the flat (although we do have the option of using my boyfriend's brother as a guarantor if necessary). Should I wait until the references come back (sometime in the next few days) to see what they say, and then I can show my credit report to the agency if necessary, or should I say something now to them?

gazfocus

I wouldn't worry too much about the credit checks. I have a stinking credit record (6 defaults - most recent being 4 years old) and still passed the check that Letsure did for me a few weeks ago and my application for our new house was successful.

I was very honest and upfront with the letting agency and they assured me I'd be ok. They said that what they are looking for is CCJ's and Bankruptcy so if you haven't got either of those, you have no need to worry.

summereeyore

thanks! because it's our first home together, I'm just really worried that it could cause problems! hopefully that is all that they will check for and I don't have either of those so fingers crossed it will all be fine - it's so annoying because I got the default when I was still a student, now that I'm 'grown-up' and manage my money really well (I even have a monthly budget spreadsheet which I always use to manage my money!) it still occasionally affects things!

thank you for the reassurance!

gazfocus

summereeyore wrote: »

thanks! because it's our first home together, I'm just really worried that it could cause problems! hopefully that is all that they will check for and I don't have either of those so fingers crossed it will all be fine - it's so annoying because I got the default when I was still a student, now that I'm 'grown-up' and manage my money really well (I even have a monthly budget spreadsheet which I always use to manage my money!) it still occasionally affects things!

thank you for the reassurance!

I know what you mean. I'm constantly worried about the effect my credit rating has on things I want to do (such as when I was applying for this house and car insurance, etc). I will be glad when the defaults have fallen off my credit record

The spreadsheet sounds like a good idea...will have to try and come up with one myself.

GarySt_2

Be up front every time and get acceptance of any problems before proceeding. Tell the landlord or agent all he will find and that if that is not acceptable they shouldnt take your fee. If you dont you will lose your referencing fee. You have probably been charged £200 for credit references of which about £150 is profit to the agency. They will charge this whether you pass or fail.

princeofpounds

Credit agencies do not just send a score back on a check. They send back the data on things like missed payments, and then might suggest a score (and then only if they are being paid to dispense their 'wisdom'!).

Often banks, landlords etc. have their own criteria that are nothing to do with the agency inhouse system - credit scoring is a totally arbitrary decision and not a single system.

By the sounds of it, you will be totally fine on renting but often a good idea to check problems verbally first before paying the fee as if they are looking for a spotless record for ever and ever amen and nothing else will do then you don't want to waste time.