Letting Agency Credit Checks

musicmysavior

This past Friday evening, we paid £500 to get both myself and my partner referenced, checked and looked into.

The problem? I have bad credit. As a youngster, I wasn't very reliable with my phone bills or had issues with my carriers and the result, whether it was that or losing a job and not being able to pay, is that I owed money to most of them.

These debts usually run out after 6 years and most of them are old enough now that they've expired.

That doesn't mean that my credit isn't low. I have a very poor credit score and sit firmly in the red. I don't have any CCJ's (County Court Judgements) or am I paying any credit outside of my overdraft, that I've had since 2002 and never defaulted on.

Before the agency ran these checks, I made it abundantly clear what my score said. I told them the truth, flat out, that I had bad credit from when I was young and that I'd be in the red (very poor), that I had no CCJ's, no criminal record and that I had no ongoing credit that would be a cause for concern.

She said she would speak with the landlord and give them all the information. Having done that, she said they agreed to go with us and took the fee for the checks.

I'm just worried that since that fee is non refundable, that if I fail the checks despite telling them that I have bad credit, that we won't get the property to rent or our money back.

Can anyone give me any advice on what the credit checks look for, whether or not I'm likely to fail and if that'll be a problem? My partner on the other hand, has absolutely pristine credit. Her report should be spot on, it's just mine that I'm concerned about. The landlord and the agency alike should be well aware before taking our money that I'd not have good credit. I'd be absolutely furious and gutted if they turned us down based on information I had already told them.

Like I said, I have no criminal record, no CCJ's, no ongoing credit and have paid my rent here at our current property for 14 months without fail.

Can anyone please give me some information, or even some past experiences that could help me to either ease my concern or prepare appropriately if I need to.

Thanks in advance.

FutureGirl

Landlord credit checks can't see the ins and outs of your credit file, just if you have any CCJ's, bankruptcy or defaults currently.

marksoton

I'd be more bothered the barstewards had taken £500 for the privilege of these "checks".

If you get the property make sure you keep an eye on these agents...

HappyMJ

£500 for referencing. Ouch and I thought that £432 was very bad. The £432 included all fees to set up the tenancy. I handed over £100 before the tenancy started for the non refundable fees. Still had to pay the deposit and first 6 months rent on top.

musicmysavior

Yeah, I have to admit, it was a lot from what we've been looking at as well. I doubt the checks even cost them a hundred or so to complete in the first place.

Thanks for the responses. I'm glad they can't see the ins and outs. Since I don't have any credit at the moment, I'm hoping with the lack of CCJ's and Bankruptcy, we'll be alright.

Any more opinions or experiences on the topic would be extremely welcomed.

theartfullodger

Considering a credit check costs only some £7 to £30 see
https://www.nlatenantcheck.org.uk/services.aspx
- and the £30 one can be quite detailed they are making a huge markup. (Both of those check for bankruptcy... sorry.. Checks can be very different in what they check).

They will probably be quite happy to see you fail & they hold onto the £500. What did the receipt or anything else say about when fee would be returned, if ever??

In Scotland such fees are illegal: Come on England, catch up!!

Ingah

As someone about to find themselves in a similar situation to the OP (looking to rent a place with the girlfriend, except I'm the one with excellent credit and she's the one with historically bad credit, including a CCJ a few years ago!), I'm particularly interested in this thread.

Any insiders know what the credit check is for exactly, as it's not a simple pass or fail, it's just information! Just like the OP I'm wary that it's in the estate agent's financial interest to 'fail' as many of these heavily marked up checks as possible and not to let on that either tenant having bad credit = no let.

The irony is that I've got a 10% house purchase deposit tucked away in the bank, making a let to 'us' very safe indeed for the landlord!

Prothet_of_Doom

marksoton wrote: »

I'd be more bothered the barstewards had taken £500 for the privilege of these "checks".

If you get the property make sure you keep an eye on these agents...

Other referencing firms are available https://www.openrent.co.uk/tenant-referencing

£20 it costs per tenant/guarantor.

I get my potential tenants to fill in an application which details anything that they know might be an issue, so that I can decide if that is an issue to me before wasting £20 of their money.

If someone is happy to pay £500, then I guess that they are not good with money.

I've seen a letting agent, take a £150 none refundable application fee off someone who just told them they had CCJ's, whilst saying "It will all depend on the landlord" .

If that had been me, I'd be saying "before I pay £150, ask the landlord if that is a problem"

I !!!!ing hate letting agents with a vengence. (I'm sure some do a fair decent job, so sorry if I lump them in the same !!!! bucket)

HappyMJ

Ingah wrote: »

As someone about to find themselves in a similar situation to the OP (looking to rent a place with the girlfriend, except I'm the one with excellent credit and she's the one with historically bad credit, including a CCJ a few years ago!), I'm particularly interested in this thread.

Any insiders know what the credit check is for exactly, as it's not a simple pass or fail, it's just information! Just like the OP I'm wary that it's in the estate agent's financial interest to 'fail' as many of these heavily marked up checks as possible and not to let on that either tenant having bad credit = no let.

The irony is that I've got a 10% house purchase deposit tucked away in the bank, making a let to 'us' very safe indeed for the landlord!

It's more about openness and honesty. If a tenant declares they've been bankrupt recently then it's much more likely a landlord will let the property to them. A bankrupt person must prioritize rent as the first bill to be paid before any other bills or any creditors. Creditors can't knock on a bankrupt door and ask for any money they have to go to the Official Receiver so there's little pressure on a bankrupt person to pay for anything. If they hide the fact they've got multiple CCJ's leading to a bankruptcy and the credit check reveals they do then there is no chance they'll get a tenancy.

Bad credit does not always mean no tenancy. Bad credit can be caused by many things...it's not always people who are bad with money that go bankrupt. People who can budget perfectly every month could still potentially go bankrupt if someone makes a claim against them which is not insured.

When I got this property I declared my credit was fine but my partners was very poor and she was going to get a DRO which you would think would scare landlords off but it doesn't. They still credit checked her and she passed.