Failed a credit check for renting? Here's how to rent with a low credit score

It's normal for landlords to perform a credit check when you're applying to rent a property. They're trying to verify your details and understand how reliable you'll be as a tenant. They might also ask for proof of income (tax returns if you're self-employed), an employment contract, bank statements (usually the previous three months), and identification documents.

A tenant credit check appears as a soft search on your credit report – which has no impact on your credit score. Through a soft search, lenders are able to see the public information on your report, which includes:

• Your Electoral Roll listing. 

• County Court Judgments (CCJs). 

• Insolvencies.

• Bankruptcies.

If you've recently failed a credit check for renting, don't panic. It might be due to something on your credit report, and you may have options. Below, we've put together a step-by-step guide covering what happens if you fail a credit check for renting and how you can rent with a low credit score.

What happens if you fail a credit check for renting

You still have options if you fail a credit check for renting in the UK. You're not banned from future rental applications.

After a failed credit check, contact the landlord to ask why you were rejected so you can understand what happened and whether there's anything you can do to put things right.

A great way to understand what could have impacted your application is to check your credit report. At Checkmyfile, we put all your information from the UK’s three main credit reference agencies – Experian, Equifax, and TransUnion – in one place. It’s the most detailed credit report you can get. And if you spot something that doesn’t look right, our UK-based customer care team can help.

Get started with a 7-day free trial. It’s then £14.99 a month – cancel online anytime.

You might see that your credit score needs work, but landlords don't actually see that. What they will see is the information on your credit report that influences your score, which could be a history of CCJs or insolvencies, or simply that you're not registered on the Electoral Roll.

Why you might fail a credit check for renting in the UK

Things that could impact a landlord’s decision are CCJs, insolvencies, or bankruptcies on your credit record. These are indicators of substantial risk.

It’s also possible to be rejected if you aren’t on the Electoral Roll. Lenders use this to verify your details – so they may need further information from you if you’re not registered.

The rejection might also be income-related or employment-related, rather than the actual credit check itself, which is why you may want to contact the landlord as soon as possible to ask what went wrong and how you can prove yourself as a reliable tenant.

What does a ‘low’ credit score mean?

When you look at your credit score, you could see a number that’s lower than you might like. At Checkmyfile, we use a scoring range from 0-999. We then use bands to help you understand what the number you see means:

• 0–499 = Starting line

• 500–599 = Building blocks

• 600–699 = Solid foundations

• 700–799 = Every step counts

• 800–899 = Near summit

• 900–999 = High scorer

Your score is generally considered ‘good’ once it hits 700. If your number is below this, there could be something on your credit file that might be preventing you from reaching the upper bands, which is why it's important to know your file. Common causes of a lower credit score are:

• Missed payments.

• Not registered to the Electoral Roll.

• High credit utilisation.

• CCJs, insolvencies, or bankruptcies.

• Defaults or collections.

A low credit score simply means you have something to work on to make it a good credit score. No matter where you sit right now, there are always steps you can take to get things moving in the right direction. And we’re in your corner. 

Can you rent with a low credit score?

Yes, if you’ve failed a credit check for renting, renting with a low credit score is still possible. Landlords don't actually see your credit score, nor do any lenders, for that matter. It's a number you see that gives you an idea of where your overall credit health is at. What they do see, if you have them, are the risk identifiers we mentioned above. 

And even with those, you might still be able to secure a rental contract (more on how to below).

How to rent with a low credit score

Here are some options to help you get the keys to your new home, even with a credit score that needs work.

Check your credit report before you apply

Start by checking your credit report before you apply or reapply. This is the best way for you to understand what might be on your credit report that could cause landlords to reject your application. See everything a landlord could see with your Checkmyfile report.

Use a guarantor with strong credit

You might be given the option to use a guarantor with strong credit health and proof of income. A guarantor is someone who signs a legally binding agreement to pay your rent or cover property damage if you fail to pay. Landlords use them as a financial safety net for tenants with low income or credit health, or no rental history.

Provide references from your employer or previous landlords

Sometimes, you can provide references from your employer or previous landlords to help build a character profile that proves you're a trustworthy and credible person. Bonus points if you can get a reference from a previous landlord who can confirm you were a respectable tenant who always made payments on time.

Improve your credit for renting with Checkmyfile

At Checkmyfile, we put all your info from the UK's three main credit reference agencies – Experian, Equifax, and TransUnion – in one place. 

Lenders don't necessarily report to every agency, so having everything in one report means you won't miss anything when you're applying to rent a property. 

Get started with a 7-day free trial. It’s then £14.99 a month; cancel online anytime.