Do you need a good credit score to rent a home?

How your credit score can affect renting property

When you’re looking to rent a house or apartment, your landlord or their letting agent will perform certain checks on you to make sure you’re a good tenant. One of these checks might be on your credit report, but there are a few other things you should know about before you start property hunting. 

What do rental checks show?

A rental check will check if you can afford the proposed rent, and if you can be counted on to pay it. Basically, the landlord wants to see that you’re trustworthy and that they’ll get paid on time, and these checks will give them the guarantees they need. 

They’ll also want to see that you’re not the kind of person who’ll trash their property, and that you have a legal right to rent in the UK. Here are some of the things your rental check will look for:

• Reference checks with your employer and your current or previous landlord

• Proof of identity, either through your passport or driving license

• Proof of income from payslips and three months of bank statements

• A kind of credit report that will show limited information (we’ll go into this later).

Do rental checks show your credit history?

Sort of, yes. Your landlord will need to get written permission from you before running a credit check, and they’ll see a different kind of credit report to what you can access.

Their view of your credit history will only show them information visible on public records, like whether you’re on the Electoral Roll or the Individual Insolvency Register. It will confirm your name and current address, and any history of insolvency or county court judgements. 

Landlords won’t be able to see your borrowing history, your credit limits or any history of missed payments, and you don’t legally have to let them view your credit history at all. However, some landlords may see this as you trying to hide something, which may prevent you from getting the property. 

What should you do to pass a rental check?

Passing a rental check is key to securing the property you want to rent, and there are a few things you can do to give you the best possible chance:

• Get your finances in order
  Landlords will want to see that you have a steady stream of income to show that you can afford their rent. If your monthly salary isn’t enough to cover the rent and any bills, there’s a good chance you’ll fail the checks. 

• Check your credit score
  While landlords won’t be able to see the same credit score as you, this will give you a good idea of your financial situation, allowing you to address any potential concerns before they get brought up. 

• Provide good references
  Good references show your trustworthiness as a tenant. Seek references from past landlords, employers and trusted friends or family members with reputable careers.

• Have funds ready to go
  Showing your prospective landlord that you can afford to pay any deposit and your first month’s rent will put you in the strongest position to proceed with your application.

What happens if you fail a rental check?

Failing your rental check isn’t the final nail in the coffin of your application, but it can make things a bit more difficult. Landlords might ask you to provide a guarantor - someone who could cover your rent in case you can’t. A guarantor will need to pass their own checks to be deemed appropriate. 

Landlords may also require a higher deposit or a few months’ rent in advance to give them extra financial security, while further checks and references might be requested to provide reassurance. 

If all of that fails, or the landlord just sees you as too high a risk, your rental application could be turned away. 

Does renting improve your credit score?

Paying your rent doesn’t go towards improving your credit score, even if you always pay it on time and have a long history of being a reliable tenant. This is because your rent isn’t a kind of credit - you haven’t borrowed it from anyone, and you’re not paying it back. 

How Boshhh Mobile can help you pass rental checks

Using Boshhh Mobile’s credit building SIMs is an easy way to improve your credit score. While landlords won’t be able to see your repayments on your rental check, having a good credit score is more likely to result in you avoiding insolvency or getting involved in any county court judgements, all things landlords will be looking for. 

A good credit score can also help you access other forms of lending, meaning once you’re all moved in, you’ll be able to afford that comfy sofa and big TV to make the place feel like home.