Credit checks when renting

dh1989

Hi

My wife and I have been homeowners for the last 5 years.

We are about to sell and are looking for somewhere to rent. My credit rating is not good and I just wanted to check what kind of check is carried out when applying to rent a property?

Is this a soft check for CCJ's and to check identity or are they full checks that lenders carry out?

Advice is appreciated,

Thanks, Dave

ThePants999

They can only see the public register, i.e. CCJs/bankruptcy. (Unless you show them your own credit files, which some agents try to get you to do!)

dh1989

Thanks. We're in a strange position because my credit score isn't good, but we have a lot of savings so could technically pay a large part of the rent up front of required. Not sure if many will accept more up front rather than the steady income though?

muhandis

This thread might be useful, where the same question has been discussed in detail. https://forums.moneysavingexpert.com/discussion/comment/76114076#Comment_76114076

To summarise, quite a few tenant referencing agencies (which LAs typically use) require a detailed look into the prospective tenants' finances including a full credit check, especially where the landlord is taking out some form of rent insurance.

Of course you can refuse, but usually that would just mean you can't proceed with the application.

Mind you, they're not going to be as strict as a mortgage provider etc, more to check that you can afford the rent, employment check and no major recent credit issues.

I wouldn't stress too much. Assuming you're in England, as long as you don't misrepresent your situation to the EA/landlord, if they refuse to let to you after the reference check, they have to return the holding deposit. They can't charge you for the reference checks either, so monetarily you don't have anything to lose.

Comms69

muhandis wrote: »

This thread might be useful, where the same question has been discussed in detail. https://forums.moneysavingexpert.com/discussion/comment/76114076#Comment_76114076

To summarise, quite a few tenant referencing agencies (which LAs typically use) require a detailed look into the prospective tenants' finances including a full credit check, especially where the landlord is taking out some form of rent insurance.

Of course you can refuse, but usually that would just mean you can't proceed with the application.

Mind you, they're not going to be as strict as a mortgage provider etc, more to check that you can afford the rent, employment check and no major recent credit issues.

I wouldn't stress too much. Assuming you're in England, as long as you don't misrepresent your situation to the EA/landlord, if they refuse to let to you after the reference check, they have to return the holding deposit. They can't charge you for the reference checks either, so monetarily you don't have anything to lose.

There is nothing in that thread to suggest a full credit check is done.

muhandis

Please see below.

Comms69 wrote: »

There is nothing in that thread to suggest a full credit check is done.

max50 wrote: »

The open banking part is optional, however, the full credit check provided by TransUnion is not. This is provided to the letting agency by TransUnion regardless of whether the tenant opts into open banking or not. This applies to all reference options (Open Banking would likely mean a same day decision, but otherwise may be longer).

"If the tenant opts in to open banking, they are redirected to our partner TransUnion (formerly Callcredit) who will access their online bank and send us a 12-month snapshot of their finances. TransUnion will also provide us with a full credit report regardless of Open Banking.

Comms69

muhandis wrote: »

Please see below.

I don't believe it, I'd love to see a draft of what is actually provided.

muhandis

Well, to believe (or not) what they've put on their website is entirely up to you

Comms69 wrote: »

I don't believe it, I'd love to see a draft of what is actually provided.

Comms69

muhandis wrote: »

Well, to believe (or not) what they've put on their website is entirely up to you

Like I said I’d want to see the actual report

muhandis

Yeah, you should ask them or TransUnion. But how can you believe what they tell you.....

Comms69 wrote: »

Like I said I’d want to see the actual report

theartfullodger

It is up to the landlord and/or agent what if any checks are run: Could require copies of bank statements or nothing.


My best ever tenants only check was a neighbour who said to me "Mr Artful they very nice people" - and they were.


It is up to the tenant what or if any checks are run on agent and/or landlord. You could start by asking for copies of proof of ownership & permission to rent out, as well as criminal record check pass certificate: (I passed!).