- 62% of landlords and letting agencies choose who to rent to based on their financial history
- Landlords state someone’s history is more influential than their current salary
- 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 as many as 14 people battling for each available rental property1, landlords can pick and choose who they rent to. The majority of landlords in the UK – 85% – will now run a credit check on possible tenants and make their decision based on what they find. UK landlords say an applicant’s financial history is more influential to their decision than someone’s current salary with 62% of UK landlords stating someone’s credit reference impacts their decision, compared to just of 41% who take salary into account. For a full explanation of what your credit score includes check ClearScore.com.
|What impacts whether a landlord will let you a property|
|1||Financial history/credit reference||62%|
|7||If you have children||13%|
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.
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.
|Rank||Area||% 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.
- 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.
- 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.
- Make sure that your bank and any credit providers have your correct address.
- Ensure you’re registered on the electoral roll – this is a very simple way of boosting your score.
- 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.
- Your score will increase if you use a smaller percentage of your available credit limit.
1 ClearScore data arrived at by surveying 500 UK landlords and letting agents 25.10.16 – 28.10.16
ClearScore (www.clearscore.com) is a free service which allows consumers to access their credit report and scores for free as often as they need or want. As well as offering a 100% free service, ClearScore also guarantees privacy – promising to never sell customer data. ClearScore has partnered with credit reference agency and insights provider Equifax to deliver the credit reports and score data. The product matching service is delivered in partnership with TotallyMoney.com.
Hatty Webster / Thom Norman 0207 924 5656 ClearScore@capellapr.com
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