A poor credit history makes passing the referencing checks required by many private landlords and letting agents more difficult, but it does not make renting impossible. Understanding what landlords look for, and what options are available when standard referencing fails, helps renters with a difficult credit history find suitable accommodation.

What Tenant Referencing Checks

Most letting agents and many private landlords conduct credit checks, employment and income verification, and previous landlord references as part of the tenancy application process. A credit check looks at the applicant's credit score, any county court judgments, individual voluntary arrangements, bankruptcy history, and the level and management of existing credit commitments. A poor credit score, missed payments, or a CCJ will often result in referencing failing, which may lead the landlord to decline the application.

Providing a Guarantor

A guarantor is a third party, typically a parent or close relative, who agrees to cover the rent if the tenant defaults. Many landlords accept a guarantor as an alternative to a clean credit history, as the guarantor provides an additional layer of financial security. The guarantor typically undergoes their own credit check and income verification to confirm they can meet the obligation if called upon. Asking a family member to act as guarantor is the most common route for people with poor credit who want to rent privately.

Larger Advance Deposit

Offering to pay more than the standard one month's deposit upfront, or offering several months' rent in advance, can reassure a landlord about the risk of taking a tenant with a poor credit history. While the maximum deposit is capped at five weeks' rent under the Tenant Fees Act 2019, a landlord may be willing to accept advance rent payments to reduce their risk exposure. This requires having the funds available upfront, which is not always possible.

Private Landlords

Private landlords who do not use a letting agency have more flexibility about their referencing requirements. Some private landlords do not conduct formal credit checks and rely instead on references and a personal assessment of the tenant's circumstances. Searching directly on sites like Facebook Marketplace or Gumtree for privately let properties, and being upfront about the credit history, gives a better chance of finding a flexible landlord than approaching agency-managed properties.

Summary

Renting with bad credit is challenging but possible through providing a guarantor, approaching private landlords directly, offering advance rent, or renting in shared accommodation where individual referencing may be less rigorous. Being transparent about the credit history and demonstrating current income stability gives the best chance of a positive outcome. Improving credit over time by maintaining payments and reducing debts makes future rental applications easier.