Tenant Credit Checks

Halfway_home

Hi Guys, I'm looking to move from a one bed flat (rented) to a 2 bed house (also renting) with my partner. I can afford the rent on my own if anything does for any reason go wrong but I'm a little confused as to what prospective landlords can and can't see on a credit check.

I understood that all they could see were any CCJ's or Bankruptcys but earlier today I saw a link to site called landlordzone which states they provide full credit checks and risk assessment

I do have quite a bad credit history as I'm in a DMP so I have a lot of defaults showing in my file can one of you lovely people please clarify for me what exactly landlords and letting agencies can see when they do their checks then I would be so grateful as really don't want to pay the £270 non refundable referencing fees if I'm going to fail

Thanks loads!

bushytailedfox

Hi there

Are you renting this new house through an agent?

If so they won't carry out the check themselves, it will be through a third party. I work as a lettings agent as we use a company called Rent 4 Sure to do all our tenant checks and they do a credit check (which will just show a pass or fail based on information supplied by whichever credit reference agency they use). They also do an income and a landlord reference.

I would recommend you are upfront with the agent and say that you have had some financial issues and will probably fail a credit check (although you must have passed one for the flat you're in now?). There are always ways round things i.e. guarantors, or even speaking to the landlord to see if they are happy to take you regardless, obviously it's a plus if you rent though the same agent as they can vouch for you being a good tenant.

If you do this, an agent who thinks you will be a good tenant will still get you referenced but will do so in order to check out your landlord and income references.

Hope that helps.

Halfway_home

Thank you that's great advice, I did pass one to get my current place but that was 2 years ago and my DMP is a fairly recent thing so my credit was fine before that.

I will be completely upfront with them and let them know about the DMP I do have someone who is willing to act as a guarantor so that's a bonus just crossing my fingers that they want to take me on

Petlamb

Sorry to jump in on your thread, HalfwayHome, but I am in a similar position. Partner and I viewed a house we've pretty much fallen in love with - but trying not to get too attached of course - and facing the prospect of credit checks and referencing.

Now, between us we make almost double the 'affordability' wage they want, partner's credit file is shiney and I don't have any CCJs or bankruptcies. However, I do have a fair bit of debt that's mounted and that I've defaulted on over the last few years... I'm dealing with it now (what with being in a decent paying, full time, permanent job these days) but very worried it's going to lose us this house and cost us £300 in the process... Very daunting indeed.

I can likely provide a guarantor too but I guess I'm hoping someone's going to say it can be okay... :S

Halfway_home

Hi Vampiric Addiction, it is so nerve wracking waiting to see if you are going to be accepted or not I hate it!!

It would make life so much easier if there was some kind of landlords database where they could see a rent history and landlord references - the estate agent told me that their referencing costs £275 per person and the actual credit check only costs £8!!!! That's just an insane mark up clearly we are both in the wrong profession we need to become letting agents it seems to be a licence to print money!

I really hope it will all be okay for you, if you have a guarantor then I'm sure you will be fine

I'm waiting to hear back from the letting agents as someone else wants to rent the house as well (surprise surprise) so the landlord is going to choose between us - guess I may have to resign myself to not getting this one which I'm a bit sad about

GolfFoxtrot

bushytailedfox wrote: »

Hi there

I work as a lettings agent as we use a company called Rent 4 Sure to do all our tenant checks and they do a credit check (which will just show a pass or fail based on information supplied by whichever credit reference agency they use). They also do an income and a landlord reference.

Rent4Sure did the checks on us for our current rental. They were useless, asking for something late Friday afternoon and then chasing us first thing Monday morning, asking for a telephone number for our employer despite the fact we'd told them they would only provide a letter, then calling us again to ask for the phone number :mad:

We regularly check our experian report and no search from them ever appeared on there, they also didn't ask our previous landlord for any info either.

Halfway_home

That's a bit shocking since your paying for it you assume that they would actually do it!

Halfway_home

Have now told the letting agents all about my DMP and have filled out an exhaustive online form for a company called Van Mildert who according to their website do a full credit check, landlord referencing, employment referencing etc no probs with either the landlord ref or the employment one but I'm so scared that I won't pass the credit one even though I have told them about the DMP

My OH keeps trying to reassure me and says that if we don't get this one then We will try again when my file looks in better shape but I'm still really really worrying about it

ging84

Experian have all the details about there checks here

http://www.experian.co.uk/background-checking/tenant-check.html

this a sample detailed report here

http://www.experian.co.uk/assets/background-checking/sample-reports/tenant-verifier-comprehensive-report.pdf

The descriptions make it seem very much like they are giving a detailed credit history check, but the reports adverse records seem to only be CCJs, so it very much looks like a check to verify address details, and identify only public record credit information such as ccjs and bankruptcies

This would be consistent with my understanding that the credit reference agency cannot simply do a full credit check for anyone who wants one, they can only be done by companies with a credit license, and then only when someone is actually apply for some form of credit.

Halfway_home

Ging84 you are my new hero, thanks so much that has taken a massive weight off my mind

almamatters1985

Hi,

Out of interest did you get the house? Did you pass the referencing?

I'm going through the same process at the minute and would love to hear how it turned out for you!