What are credit checks for renting?

If you’re looking into renting property in the UK, you’ll probably be asked to consent to a credit check at some point. Landlords and letting agents use credit checks for renting to verify your identity and better understand how you’ll be as a tenant. 

Read on to learn more about what landlords can see, how they do these checks, and how you can check and verify your information. 

Do I have to agree to a landlord credit check?

Landlords are legally required to get your consent to a credit check for renting, so you can technically reject their request. But, since these credit checks are part of the standard screening process, not consenting to one may harm your application. 

Will I be charged for a credit check for renting?

Landlords and letting agents aren’t allowed to charge you for credit checks; in fact, most tenancy-related fees are banned in the UK.

What do most landlords use for a credit check?

Most landlords will usually rely on at least one of the main credit reference agencies (CRAs) in the UK (Experian, Equifax and TransUnion) to run credit checks for renting. Each CRA should collect similar information about you.

What can landlords see in a credit check?

Landlords and letting agents usually perform a “soft search” to see information about potential renters. Wondering what landlords might want to know more about specifically? 

Here’s a quick breakdown explaining which information they may prioritise, and why:

• Electoral Roll records. Your Electoral Roll status not only allows you to vote in the UK, but it’s also a vital part of your credit report. This is because it helps someone viewing your report—like a lender, landlord, or letting agent—authenticate your identity and verify your current address. Additionally, being recorded on the Electoral Roll at your current address is a positive indicator for landlords, because it is considered as a demonstration of your stability.

• Court records. Landlords might look for any adverse court information on your credit report that indicates substantial risk, like:

  • County Court Judgments (CCJs). CCJs are a court's formal judgement that a debt is due. Any CCJs reported in your name will appear on your credit report, and they’ll typically remain there for six years. CCJs may seriously impact your ability to borrow money and are also red flags to landlords, employers, and insurers.

  • Insolvencies. An insolvency is a financial state in which an individual or company is unable to pay off its debts to its lenders. If you’re declared insolvent, the entries remain reported on your credit report for six years—even after the insolvency is discharged. Discharged means you’re no longer liable for the specific debts included in the insolvency, and repayments are no longer ongoing. However, so long as the insolvency still appears on your credit report, landlords may still be wary of accepting your application, as it still indicates a past unreliability in keeping up with payments. There are different types of insolvencies (all of them are negative indicators on your credit report), each with their own criteria, such as a:

    • Bankruptcy. A bankruptcy is the most well-known type of insolvency—it’s when an individual or business declares that they can’t pay their creditors back

    • Individual Voluntary Arrangement (IVA). This type of insolvency establishes a legally binding agreement between an individual and their creditors to pay a debt (or part of it) back over a specified period of time.

If you do have adverse court information appearing on your credit report, like a CCJ or insolvency, it doesn’t mean you can’t rent at all. It just means landlords are more likely to be wary of renting to you, and while some may reject your application outright, others may not (we discuss renting with adverse court information and bad credit in detail below). 

Additionally, CCJs and insolvencies will only remain on your credit report for six years at most, so they won’t be around as negative markers for too long. 

How can I check and verify this information?

If you want to verify the information that landlords will see in the credit check, you can monitor your credit report. You can use Checkmyfile, the most detailed credit report you can get, to quickly check your information across three of the main CRAs (Experian, Equifax, and TransUnion). 

With a clearer picture of your past, we give you clear, actionable steps to focus on your present — and progress towards the future. Make it happen

If you find any incorrect information on your report—maybe typos in your personal details, or a CCJ that shouldn’t be there—then there are two possible causes:

1. One or more CRAs have collected the wrong information. Most CRAs will collect the same information about you, but if one of the three (Experian, Equifax, and TransUnion) is reporting inaccurate information, you can contact them directly about fixing it. It’s also best to make sure your name, address, and all previous addresses in your credit report are correct. But if they’re all reporting wrong information—like maybe your Electoral Roll status is incorrect—then you might need to fix the problem directly (see below).

2. The information is wrong at the source. If you suspect your information hasn’t been properly updated or is incorrect, you can contact the source of the information directly. Your local council’s Electoral Registration Office can confirm your Electoral Roll status is up to date and you can also contact the named court if you have any incorrect court records in your name (like a CCJ). 

Does bad credit make it difficult for people to rent?

Landlords and letting agents don't typically investigate your full intimate financial details, like how much you’ve got in your account or what your expenditures are. They’re also not going to use credit scoring in the same way a lender would—they won’t see the same credit score that you do when you check yours online.

So, your credit score and personal finances on their own are unlikely to make it difficult for you to rent. What will make it difficult to rent is any indicators of substantial financial risk that landlords can see on your credit report, like adverse court information (CCJs or insolvencies).

If you have a CCJ or insolvency appearing on your credit report, it may result in your application being turned down. But if it’s been more than six years since the CCJ/insolvency was issued, it should no longer appear on your credit report, so it won’t be a factor that can negatively impact your application.

Importantly, the presence of adverse court information on your credit report doesn’t mean every landlord will reject your rental application. 

People have different risk appetites—while some landlords may reject your application outright, it might not be a problem for others. Additionally, some landlords may accept your application if you fulfil one or more of the following conditions:

1. Put down a larger deposit. For many rental properties, it’s standard practice to put down a deposit equal to a single month’s rent. But if your landlord has reservations about your financial stability, it might be worth talking to them about putting down a larger deposit, if you can afford to. This could potentially ease their concerns.

2. Use a guarantor. If a landlord is hesitant to approve your application, they might let you proceed if you agree to have a guarantor co-sign for you. A guarantor can vouch for you and, if you’re unable to pay rent, they’ll be liable to cover it on your behalf. Acting as a guarantor can affect someone’s ability to borrow money, so before you have someone co-sign as a guarantor, it’s best to make them aware of the risks.

3. Get a written endorsement from your landlord. A glowing recommendation from your current or previous landlord—confirming that you pay your rent on time and are a good tenant—can reassure potential landlords. 

Summary: Credit checks for renting

Credit checks are a standard part of the tenant screening process that helps landlords verify your identity and alert them to any substantial risks pertaining to your ability to make rent payments. While landlords won’t have access to as much information on your credit report as a lender, they can see your Electoral Roll status, and any CCJs and insolvencies. Landlords and letting agents legally require your consent to perform these credit checks, and they’re not allowed to charge you for them.

Before you send out rental applications, it’s best to check your credit report to make sure all your information is correct—in fact, it’s a good practice to monitor your credit report over time to make sure the information is always up to date. 

And if you have any adverse court information appearing on your credit report—like an insolvency or CCJ—you might want to make additional preparations, like putting together a larger deposit.