What Credit Score Is Good To Rent A House – 3 Tips For Finding The Best Company
This video looks at the credit score needed to rent a house.
You can read the full article here – https://helpandadvice.co.uk/what-credit-score-is-needed-to-rent-a-house/
In this article we look at the credit score needed to rent a house.
Let’s start at the basics.
A “credit rating” or “credit score” is basically a tool that lenders and other institutions use to see whether or not you are creditworthy.
In other words, a lender uses your rating to calculate the risk involved with giving you loans, mortgages, or other forms of credit (such as mobile phone contracts, rental agreements, and credit cards).
Part of the reason your rating is important is because it affects how easily you can access these valuable services in the future. It can also result in smaller credit limits on your bank accounts, a higher interest rate you pay on your loans.
In the UK, a copy of your credit file is held by the three major credit reference agencies (CRA). These are:
Landlords can request public record info about your credit report and rating from the rating credit bureaus listed above.
Each landlord has a different requirement for credit scores. If you are applying to rent with a large established property manager, they will probably have a stricter tenancy agreement when it comes to credit rating.
They are also likely to check the electoral roll to look into your background.
Meanwhile, a private landlord may not even request credit checks. Instead, an individual landlord may just be satisfied that you will pay the rent if you name a family member as a guarantor.
It is ultimately the decision of the private landlord whether or not they will accept applicants as a tenant. There is no rule about the minimum rating you need for renting properties.
However, having a credit history that shows the following factors may negatively impact your chances of being accepted as a tenant:
Bankruptcies and frequent debts
County court orders and judgements
An issue with managing your personal finance, such as poor credit card payment histories that have had to be resolved by the court
This is because poor credit ratings suggest that unless you make changes to your situation and finances, you may struggle to regularly make the payments you owe for your flat/apartment/home/place of residence.
Remember that in many cases, rental companies and agencies will care more about your credit history than private landlords. The fact is that their terms and lease may be stricter, so they might only accept people with top ratings.
This is because the agent is providing a professional service to a customer and needs to take the best possible steps to ensure that the landlord receives their income on time.
That’s the end. I hope you found this video useful.