Credit Checks

Dummie_2

We are due to make an offer on a rental property. We know that the LA will carry out a credit check and was wondering if they could find out:

1) that we are receiving tax credits
2) we are in the process of selling our fish & chip shop and for how much
3) how much income tax we paid during our time running the fish & chip shop
4) that my husband is the director of a Ltd company, how long the company has been set up and how much turnoever the company made

We are worried that we won't pass the credit check. This is our situation currently.

1) We have an outstanding car loan of around 1,000pounds. The full amount due gets paid by DD every month.
2) We don't have any savings
3) The fish & chip shop business hasn't been good (actually made a loss last financial year) so we are receiving around 8,000pounds in tax credits
4) We're selling the shop for 80,000 so this will then be our savings (we will pay off the car loan first)
5) The Ltd company my husband set up with a friend has been running for 1.5yrs. Business is increasing but they have never taken a salary as all the money they've made so far has been put back into the business.

Any thoughts anyone please?

Doozergirl

They shouldn't really know any of that. With a true credit check they'll just know what creditors you have and how good you are at paying each month.

With a LA 'credit check' they will also check the references you give. If you give your accountant as a reference (if you are self employed) tell the LA that you don't know exactly how much he earns as it's variable and simply ask your accountant to confirm that you can afford the rent. If they use a professional tenant checker, you will fail on a 'computer says no' basis, but if your LA has any sense, they will just ask your accountant to confirm to them that you can afford.