As i discovered myself recently, finding somewhere to rent may not be a simple process. Especially if you are self-employed, and/or have a mixed credit history. But it is still possible to find a place even if your financial history is not the best. We took a look at how to rent with bad credit.
How To Rent With Bad Credit – Credit Checks On Potential Tenants
So, can landlords run credit checks on their tenants? Yes and no, respectively. Most landlords or renting agents will do a tenant screening, which is a background check. A credit check may or may not be included.
Here’s a rundown of the kind of tests you might encounter:
• Identification proof
If you can afford rent, for example, based on your salary and bank accounts
• Whether you have permission to stay and rent in the United Kingdom.
Financial history
• Letters of recommendation from prior landlords
• Information on the guarantor
A potential landlord isn’t solely interested in your credit report. So, if one turns you down for a rental, it’s possible that it’s not the only reason.
Steps To Take
Check Your Credit Rating
First and foremost, learn what you’re up against.
Knowing your credit score will assist you in organising and controlling your expenses. Plus, if you don’t know your credit score, how would you persuade a landlord that you’re a reliable tenant?
You can mitigate against your situation if you understand it.
Work Out What Your Landlord Will Check & See
Missed or late payments, in most situations, will not affect your public credit score. As a result, landlords and rental agents will be unable to view these documents. If they’re the only thing that’s lowering your score, you’re in luck!
This, of course, is not the case for everyone. CCJs, or county court judgments, as well as bankruptcy, will appear on your public record.
However, there is one exception. Landlords may spot missed payments if you’ve joined up for a Rent Reporting service. These are typically used to improve a person’s credit score, but they can backfire if you are behind on your rent.
How To Rent With Bad Credit – Communicate
If the landlord or renting agency will be able to examine your credit score as part of the tenant screening, tell them.
Before they find out, tell them everything they need to know!
One of the first steps for individuals inquiring how to rent a house with negative credit should always be to be transparent and honest. This will make you look to be a far more dependable and trustworthy tenant.
How To Rent With Bad Credit – Guarantor?
A guarantee is generally required in specific situations, such as when renting to students. Some potential tenants, however, are not asked for one.
If you have bad credit and want to rent, you may be requested to provide a guarantor. Should your possible landlord find himself on the fence about hiring you, you may offer this as an alternative. If you fall late on your rent, your guarantor will be responsible for it, which can reassure the landlord.
Your guarantor will almost always need to be:
• Working & Residing in the United Kingdom
Offer References & Proof Of Income
Getting a reference or endorsement from a former landlord is a wonderful approach to gain the trust of future landlords if you’ve rented before.
These should ideally cast you in a positive light, demonstrating that you’re dependable, can pay rent on time, and take good care of a property.
The most important thing for a landlord or rental agent is that their rent is paid on time. Demonstrate to them that you are capable of doing so!
Prove to them that you’re a responsible person to let their property to by providing proof of your monthly income.
How To Rent With Bad Credit – Pay Upfront
You might be able to pay a lump sum of rent in advance if your circumstances allow it. For example, this could be 6 or 12 months’ rent. While this may not be feasible for everyone, it will comfort the landlord that they will not be out of cash – and will assist you if you do not have a guarantor.
