RENTERS - Is your credit score closing the door

RENTERS: IS YOUR CREDIT SCORE CLOSING THE DOOR?

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Renters struggling to secure a property face more financial cross-examination than ever before, according to ClearScore. Nearly half (48%) of landlords and letting agencies delve into the financial history of every prospective tenant and over a third (37%) sometimes do. Other hopeful applicants won’t escape scrutiny for long as 68% of landlords admit they are more likely to check someone’s credit history today than they were five years ago.

  • 68% of landlords and letting agencies are more likely to carry out credit checks now than they were five years ago
  • Landlords admit that the results of a credit check is the most influential factor when deciding who to rent to
  • Nearly half of landlords always carry out credit checks on prospective tenants
  • 39% don’t necessarily tell a tenant applicant if they fail a credit reference check
  • Renters risk losing out on properties by failing to manage their credit report and score

With demand for rented accommodation rising, landlords are increasingly selective about who they rent to. While an applicant’s financial history is the most influential factor, someone’s personality, marital status and what they do for a living are also key to opening the door of rented accommodation. “Generation rent” – those aged 18 – 34 – are most readily reviewed according to 79% of landlords.

What impacts whether a landlord will let you a property

People looking to rent in London are most likely to face credit checks to get their desired property, with 95% of London landlords choosing to credit check their prospective tenants, followed by East Midlands and the North West. Those with poor financial histories are in danger of experiencing a cycle of rejection as 39% of landlords admit they don’t always tell an applicant if they fail a credit check. And as research shows that 32 million Brits haven’t checked their own credit score, a huge number of Brits could be unwittingly making their house hunt harder.

percentage of landlords performing credit checks

Justin Basini, ClearScore founder and CEO commented, With demand for rental properties outstripping supply, landlords can hand pick tenants and many prioritise those with the strongest financial histories. As there is no sign of the housing crisis slowing down, taking control of the factors you can change – like your credit score – could help you secure your dream property in a competitive market.”

Justin’s six tips to improve your credit score:

By actively managing your credit score, you will boost your chances of securing your dream home and don’t forget to update all your address details with bank and utility companies when you move in.

  1. Sign up to see your credit score – you can get can your free score and report at ClearScore and track your progress using our Timeline.
  2. Check your report thoroughly, regularly and always before applying for credit – report and correct any mistakes you see as this could be damaging your score.
  3. Make sure that your bank and any credit providers have your correct address.
  4. Ensure you’re registered on the electoral roll – this is a very simple way of boosting your score.
  5. Make sure that your name is on some utility accounts – the greater the evidence that you borrow and repay your credit regularly, the better your credit score will be.
  6. Your score will increase if you use a smaller percentage of your available credit limit.
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