Tenant referencing/poor credit

Milkmaiden

I posted this in the housing forum originally but despite many reads have had no replies - just wondering if this forum might be a better place for it?


Hi, I wonder if anyone can help. I'm on a debt management plan and so have lots of defaults on my credit file. I am repaying my debt responsibly and am otherwise very good with money - I earn a good salary in a secure job, have no rent arrears, always pay bills on time and have no CCJs or bankruptcy.

I have been renting for years and have never had a problem with the credit checks used for tenant referencing, because - I understood - tenant referencing companies can only look at the 'public' information, eg. CCJs and bankruptcy, and cannot look at the level that would tell them about my credit card and loan defaults. No previous tenant referencing checks have found my defaults, and my last credit check even came back as 'excellent'!

I'm looking for a new home and have noticed that a number of tenant referencing companies now claim to 'check existing credit commitments' and 'any poor payment history', apparently in addition to the CCJ/bankruptcy check. Does anyone with experience of this know if it is true that they can do this, or are they making bold statements to reel in the landlords to use their services?

Referencing costs can be quite high and are non-refundable if a reference fails (one company I have seen charges around £300 per applicant which would be lost if I failed!) - so naturally I am keen to know if it is likely that they will find my credit defaults.

amr547

Milkmaiden wrote: »

I posted this in the housing forum originally but despite many reads have had no replies - just wondering if this forum might be a better place for it?


Hi, I wonder if anyone can help. I'm on a debt management plan and so have lots of defaults on my credit file. I am repaying my debt responsibly and am otherwise very good with money - I earn a good salary in a secure job, have no rent arrears, always pay bills on time and have no CCJs or bankruptcy.

I have been renting for years and have never had a problem with the credit checks used for tenant referencing, because - I understood - tenant referencing companies can only look at the 'public' information, eg. CCJs and bankruptcy, and cannot look at the level that would tell them about my credit card and loan defaults. No previous tenant referencing checks have found my defaults, and my last credit check even came back as 'excellent'!

I'm looking for a new home and have noticed that a number of tenant referencing companies now claim to 'check existing credit commitments' and 'any poor payment history', apparently in addition to the CCJ/bankruptcy check. Does anyone with experience of this know if it is true that they can do this, or are they making bold statements to reel in the landlords to use their services?

Referencing costs can be quite high and are non-refundable if a reference fails (one company I have seen charges around £300 per applicant which would be lost if I failed!) - so naturally I am keen to know if it is likely that they will find my credit defaults.

My OH passed a credit check with a referencing agency last Feb with no problems, despite being in a DMP.

datlex

I would have thought they would be more concerned at whether you owed money to past landlords or couldn't afford the rent than any debt you are paying off.

Tixy

I don't believe any letting agents or the agencys they use to perform credit checks can see your credit account history.

There is a potential that they could see past rent payment history, but in practice it is too soon for that at the moment. Its only just been decided rent payments can be reported to the credit reference agency, and even then landlords/agents will have to get permission from the tenant to report that info (usually when a new tenancy agreement is signed) and not all will necessarily do so anyway, so the chances of them appearing on many people's files for the next few months is slim.

Eventually though rent payments will start to appear and then other rental agencies/tenancy credit checks will be able to see that info.

sickasachip13

Hi,
Funnily enough I have asked this question before and was reassured by Tixy, but I am now definitely going to move and have received the forms from the agent. We've never messed up our rent payments but we obv have defaults because we're in a DMP. They use rentchecks.com, who are asking all for all sorts of info and have worried me, especially in their description of their 'product' here:
Advanced Reference Report



Our Advanced Report provides agents, landlords & property professionals with a fully investigative referencing solution.
The aim of the Advanced Report is to address the key risks that are inherent to the property letting/management process. Every application is carefully considered and a final decision is only provided once the applicant's credit history and referee verification is completed.
An Advanced Rentchecks Report is thorough, fair and efficient. We aim to process applications within 2 working days however this is dependent on the availability of the referees provided.
Should you require a speedier decision you can use our Advanced Priority service which will return a same day result (application must be submitted before noon Mon-Fri).
This report is accepted by numerous UK underwriters & insurance companies making it an ideal choice should you be considering taking out additional rent guarantee insurance. In addition, applicants who achieve our low risk rating are eligible to apply for our rent warranty cover which provides additional peace of mind for the duration of the tenancy.
With an increase in fraud & application falsehoods we place a high importance on the verification process. The authenticity of every landlord or income related referee is verified prior to us establishing contact. This has enabled us to identify & flag up fraudulent applications at an early stage. It is also critical to establish the applicant's ability to afford the rent before an agreement is drafted.
Verification of salary (employed applicants) or income (self employed/retired applicants) is included when a relevant referee such as an accountant is included within the application.



Below is a summary of the checks conducted within an Advanced Referencing Report.

6 year credit history search (Identifies defaults, CCJs, bankruptcies, IVAs & linked address credit history).
Linked address search (Locates undisclosed associated addresses & residence history).
Validation & collection of 3 references (All referees are contacted directly).
Accountant / Solicitor references collected.
Guarantor credit check to assess the proposed Guarantor's suitability
Post analysis recommendation (Suggestions as to how to proceed once the applicant's data has been assessed).
Rentchecks System Alerts (Bad and high risk tenant's details are held within this database).
Reliable Acceptability score (Proven scoring system designed to assess the applicant's overall suitability & risk categorisation).
Delivery within 2 working days (same day decision for priority applications).
Affordability analysis (Assesses the applicant's ability afford the proposed rent).

fermi

The don't have access to credit account data. i.e. details of default, payment history etc.

I think some may be able to get 'aggregated data'. For example, that defaults exist for a given period, but even that I'm a bit dubious over. They certainly cannot see specific details.

You have to remember that that is a sales blurb. They try to make you think you will get more for your money on the report that you actually will. The sample reports I've seen from such agencies are disappointing to say the least.

sickasachip13

Hi Fermi,

Thanks for your reassuring response. I guess I'm going to find out for sure in the next few days as we've paid our money and are providing all the info requested tomorrow. I'll report back :-)
SAAC

sickasachip13

Hi y'all,

Thought I'd come back with an update.....we're moving house! Whatever that firm alleges to offer, nothing came back on us, which makes me believe that all they can search for is the publicly available info -ccjs and bankruptcy. I do not believe they can see defaults otherwise I suspect we wouldn't have been welcomed so keenly by the estate agency.

SAAC

gemstu

Hello
Its good to see that you got through ok. I am also waiting for references back, however i am nervous about mine comimg back ok. I have been in the same home for 5 years and have always been a good tenant. However the LL is wanting his home back so we have to move out. The problem is, that the last 2 months, my husnband has not had any work ( he's self employed)so despite letting the agency know of our situation and doing all we can to resolve it, it still shows 2 months arrears. My new agency have done all my checks and they have come back fine ( my husband and i are also separating) however my current agency is threatening to give me a poor ref if i do not pay the monies. I have advised that we will be on a payment plan to get this all back to them, however without this ref im worried my current agency will turn around and say that i cannot move. The checks are being carried out by rent4sure. Do you have an opinion on this?

sisbod

When I was last looking to rent accommodation June last year I completed this and it was accepted without question by my landlord to be!
The bonus of it was I had a couple of things that I had a feeling would come up and it allowed me to preempt the problem! It has within the certificate the recommendations that would make the landlord happier eg extra surety, suggest a guarantor that sort of thing!! The final best part was it was about £35-£40 and saved a load of extra fees for me and time for them!

http://www.rentchecks.com/tenants.asp