Can I rent with a default on my credit file?

kennjamin

I will be looking to start renting in the next 6 months or so, I currently have a default on my credit file from a couple of years ago when I was to young and stupid to realise what would happen if I didnt pay my mobile phone bill.

What affect will this have on me with renting? As I know that credit checks are carried out. I have taken my finances a lot more seriously since then and so my credit rating is getting better as the months go on. But I will still have this default on my account for a number of years.

Thank you in advace for your help.

BitterAndTwisted

You need to be absolutely honest with any landlord or letting agent when you first speak to them. DO NOT leave it for them to find out when the credit-checks are done. Landlords and agents hate nasty surprises!

Depending on their attitude you may not necessarily have any problems securing a tenancy if you have run your affairs responsibly of late and can prove via bank statements and pay-slips (if they ask for them) that you can afford the rent.

If they take a very dim view they could ask that you pay up to six months rent in advance or that you supply a guarantor. I honestly think that this would not be likely but anything can happen.

kennjamin

Thank you for the advice, I do plan on being completely honest. I do not understand why they let 18 year olds have phone contracts and credit cards, I was not old enough then. Now I am 23 I really regret all the bad decisions I made, I guess you have to make mistakes to learn from them.

BitterAndTwisted

You are lucky. Some people make very serious mistakes when they are young and appear to learn absolutely nothing from them. A particular member of my family is testament to that!

wrightk

As has been previously posted on this forum by an experian company representative, when LL's do credit checks, they have no access to your personal credit files. I quote from James Jones experian company rep
"Landlords and letting agent cannot look at your credit history, just the public record data on your credit report such as court judgments and bankruptcies. So as long as you have none of those you should be fine. They might also check your name and address on the electoral roll.

Only lenders can carry out full credit checks, which they usually build into a credit score. The score you can get from Experian is a guide, as lenders' scores will vary. Landlords do not calculate credit scores - they're simply checking that you have no accute financial problems.

James Jones"

dan77_2

When I took my current house a year ago I had 2 CCJ's both satisfied totalling £1026 plus 2 defaults. I got the house BUT I told the agents up front about them, I also explained that I had had no credit problems for 5 years. As others have said be honest and you should be ok!

bristol_pilot

If you rent directly from a LL, you may not have a credit check done. Credit checks for tenants have only become common practice in recent years and are a scam for agents to make a few quid while the property market is quiet.

kennjamin

Thank you, you have all been very helpfull!

Wood.Justin

kennjamin wrote: »

Thank you for the advice, I do plan on being completely honest. I do not understand why they let 18 year olds have phone contracts and credit cards, I was not old enough then. Now I am 23 I really regret all the bad decisions I made, I guess you have to make mistakes to learn from them.

I can relate to you on all levels there, I'm 24 now and have been in debt since the age of 18 with stupid credit cards. I wish I never had one to begin with... Luckily I've never defaulted or missed a payment. I should be making more of an effort but that's why I am here...

Regards,
- Justin

Pinkruth

Wood.Justin wrote: »

I can relate to you on all levels there, I'm 24 now and have been in debt since the age of 18 with stupid credit cards. I wish I never had one to begin with... Luckily I've never defaulted or missed a payment. I should be making more of an effort but that's why I am here...

Regards,
- Justin

I can also relate to this. I made some HUGE bad credit decisions, and up until about 5 years ago I still was. Its only since that I have really understood how important it is to have a good file. I was BR 10 years ago and just thought stuff it, but now Im older I realise what an idiot I was, but although I have a phone cotract that Ive had for almost 2 years and paid relentlessly and on time by DD, an Electron bank account that I've had for 6 years and never defaulted on, 2 'bad credit' credit cards with £200 on each that is paid each month by DD and have been for 8 months since I had them, I still can not get a catologue account or standard bank account, even though my credit file is perfect.

I must admit I'm not on the electoral roll, so thats probably the reason, which will change in a couple of weeks as Im seperating from my husband and moving closer to my family, but in the current climate lenders of any kind will find any excuse not to lend, they are more worried about protecting the credit accounts they already have rather then new lending, so anyone with the slightest blip on their file will find it difficult to secure credit at all, but this can also be said for people with squeeky clean files and good jobs too at the moment.

Svenena

I had a default 5 and a half years ago, but I only realised when I checked my credit report 3 months ago. I suppose I must have had a letter, but my finances were so messed up back then, I wouldn't have even known what a default was (I also blame being young and stupid). I've rented around 10 different properties since then, mostly via letting agents, and never once had a problem, despite not mentioning it in advance (as I didn't know about it).