Looking to rent for the first time, Will i need a guarantor

terley

Hello

I am currently living in a house with two friends being letted to me by a work colleague. I am planning on leaving as soon as possible because ive figured that living with friends and their bad habits can be tiresome..

I have had a mixed credit past with a history of pay-day loans and a few mobile phone contracts i neglected for too long.

My experian credit report currently states:

1 negative factors:
You have an account regarded as defaulted or delinquent

4 positive factors:
The balance of your unsecured lending indicates a lower risk.
You have a significant number of successfully settled credit accounts.
The number of credit accounts you are using is low.
The age of your accounts indicates lenders are likely to view you as lower risk.

My current score is: 656 (poor)
The negative factors are:
Lending stream LTD: 6 payments late - Balance settled. 08/2012
02: Default - Balance satisfied. 11/2012
Vodafone: Default - Balance satisfied. 09/2014
Wonga: Default - Balance satisfied. 03/2012

I also have a credit card that i have never missed a payment on, I am always in credit with them and its balance is only £200. I got it to try and improve my credit but its now shown yet on the report. In recent memory i did all i could to try and rectify the outstanding debts i owed, and my total debt is around £2500 for an agreed car finance that is coming towards the end of its term.

I realize that my score will drastically improve in 2018, but between then and now i want to try and move to somewhere a bit cheaper of my own.

What are the realistic chances of being accepted credit on my own for rent or even a potential mortgage.

I earn between 28-40k per annum. (33k average last 3 years)


Thank you for any advice.

scubaangel

I think it depends on the area but where I am the letting agency wanted you to earn £20k for a rent of £700 with no guarantor without taking in to account any other credit issues.

lonestar1

could you pay 6 months rent upfront ?

onetwothreefourfive

I think letting agents can only see things like CCJs so I don't think they will be able to see those, so I think you will be fine.

They might have a certain multiple of your salary that they want the rent to be as well - but it will be different between different agents.

happy_bunny_2

They won't know about the PDL and defaults etc unless you tell them.

Rental credit checks are based on public records, I.e. CCJ or worse.

Your income seems pretty good.

HB

Lord_Baltimore

Don't leave your present arrangement until you're sure you can go it alone. You should be able to get away without a guarantor if you pay a deposit and 3 months rent in advance. No need to mention your credit history.

For the future: pay your bills; you can afford it. You know it makes sense.

Pixie5740

Your credit score from Experian is meaningless. There's no such thing as a universal credit score and Experian don't lend money so who cares what number they assign to you. If you've viewed your Experian file using a free trial fair enough. If not cancel the subscription.

Generally speaking all LA and LL can see is your public credit file which shows bankruptcy and CCJs. If you don't have any CCJs and you're not bankrupt then that part of the referencing will be fine. Other parts of the referencing will be thing like affordability and providing references from previous landlords.

Don't give notice on your current home until you've found somewhere else to live.