What To Expect From a Lanlord Credit Check
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What to Expect From a Landlord Credit Check
Lettings give those that don't want to or cannot afford to buy get a property that meets their needs, however most rentals are now subject to a landlord credit check before any contracts can be signed. When you first find a place you wish to rent its most likely you will first have to undergo a credit check as part of the application. Whether you have a glowing credit score or have had issues previously the word 'credit check' often worries people in case a problem occurs. Although written permission to perform a credit check is not required by law it is often sought by landlords.
At letting companies the cost of undergoing a credit check is usually down to the tenants as part of the application fee. If you are not sure whether or not you will pass you may be reluctant to part with your cash. With more landlords requesting credit checks it's unlikely you will be able to avoid it however there are other ways to get your credit score without paying for the nose for it.
The tenant screening reports include the credit score but may also include a criminal background check as well as any sexual offences. Other things the search may look for can include verification of employment, history of eviction and even PFAC terrorist searches.
Most people don't realise that it is possible to get a full screening but this is extremely common in bigger rental companies. Depending on the company the report is requested from the format can vary but the same information will appear as if you ordered your own.
At the time of agreeing to a credit check you should also be given information as to how to order your own for free should you be refused. If you are refused you may have to pay a bigger deposit or rent or it may be necessary for someone else to co-sign to agree to pay for missed rent or property damage should you be unable to. Depending on what the report shows you could be refused altogether which is why it's a good idea to first obtain your own so you know what to expect.
Having bad credit doesn't necessarily mean that you will miss payments on your rent, but this is more likely to be expected with renters over buyers. In the past previous rent information is not included in standard credit reports however things are now changing and your rent history is being included in more and more reports.
The first company to include rent information was Experian who get their information from three companies. The tenants pay for their rental through the online platforms and the payments are recorded either helping or damaging your credit report depending on your payment habits.
Without a prior credit rating it's not always easy to prove that you are going to be a good tenant but it is possible. If you can find somewhere to let and pay through one of the three companies that record your history even short term lettings will help you to get a property in future. If you are still struggling but have a friend or family member that will co-sign this makes it more likely for you to be accepted.
If you don't know whether you will be able to rent a property don't be afraid to ask your property manager to use the free report you have obtained to check whether or not it will be worth applying before parting with cash. Although the landlord/property manager is likely to do their own checks anyway you will get a good idea as to whether it is worth continuing.
United Screening provides tenant credit check and background checks.