Bad Credit History and Renting

Ekim

First of all a little about my situation.

Whilst I was a student I managed to run up a rather large debt on my HSBC Credit Card and although I was doing fine paying back each month eventually the repayments got too much and I couldn't afford to pay them back. I ended up defaulting on the account and they took away my overdraft. Eventually managed to get my overdraft back and began paying them back a fixed amount each month (this is and was below the normal monthly amount) I have been paying them back now for on time every month for the past year, although still at the fixed amount.

I graduated in July of last year and started a job at the end of August. I was living with my brother on his living room floor up until last month. At the end of this month I am going to be moving in to some rented accommodation.

I have just recieved the Tenancy Application from the letting agency and have seen the question in regards to the adverse credit history.

I'm now rather worried that I will be turned down and potentially lose my holding deposit, as well as a whole of a lot of inconvenience with having no where to live!

This being the first property I have properly rented through an agency can any one advise me as to whether I am likely to be turned down and what my options are?

Thanks in advance.

inmypocketnottheirs

It all depends on the letting agent/landlord. There is no rule of thumb here. If the agent or landlord uses a tenant referencing service, then your credit history will then come to light. Naturally agents and landlords only want to rent to tenants who pay their bills, so it is after all understandable that they take these steps. You may find that if you are rejected because of your credit file, then the offer of an increased deposit will put their mind at rest. It is also quite common for a landlord to ask for the full term to be paid in full up front if the references are bad.

peachespeaches

I would check out your credit history by looking on experian or somewhere that does it for free. (Google free credit check).

If you have shown that you have turned things round and are making regular payments, your credit may now be good.

Alternatively, try renting through a private landlord. They may not do as many checks and maybe wont take a holding deposit.

Ekim

I can't afford to pay the whole term in one go, or offer a larger deposit.

I looked at my credit history recently and it shows exactly what I have said, but I don't think that makes my credit good as I am still not paying the minimum each month but an agreed amount with the bank which is below the minimum.

I suppose I'm just going to have to take my chances. I will try and put an explanation on the form as to my credit history and hope they can see my situation has improved.