What software do landlords use to check credit? (2023)

How does a private landlord do a credit check?

Landlords and agents must ask your permission to carry out a credit check. They can ask credit referencing agencies for information about your credit history, including unpaid debts, missed loan payments and money judgments against you. Be honest if you're asked about your credit history.

Most landlords use FICO credit scores to determine if an applicant qualifies for an apartment. The typical categories for those scores are: Exceptional: 800 to 850. Very Good: 740 to 799.

The landlord or agent provides the tenant's full name, current and previous address, postcode and date of birth, and will need to confirm that the tenant has given consent for a credit check to be carried out.

There's no set credit score that counts as a 'pass', but if your credit report contains County Court Judgments (CCJs) or insolvencies, the landlord will be less likely to rent to you.

All in all, it should only take about two or three days for you to complete your tenant screening. It may take longer if there are delays. This could be from the tenant, their employer or their previous landlord providing the information you request from them.

In short, yes! A credit score of 500 is low, but it's not insurmountable. It would be best if you planned some extra time for your apartment hunt with scores this low, but you can still rent an apartment.

So, what to do now? After all, the tenant a landlord chooses is directly tied to their success over the course of the lease term. Ideally, property managers search for someone who will pay rent on time, report maintenance concerns promptly, and care for the property as if it were their own.

Since most credit checks for renting are considered soft checks, they won't negatively impact your credit score. The FICO® credit-scoring model, one of the most popular credit scores, ignores inquiries made within 30 days of scoring.

You can go through online letting agents like Open Rent or you can go directly via the credit reference agency, some of whom offer tenant credit referencing products. When using a third party to carry out a tenant referencing credit check, make sure you know what you're getting for your money.

What credit score do I need to rent?

There isn't a specific credit score landlords will be looking for when you apply to rent a home. But you are likely to stand a better chance if you have a 'good' or 'excellent' score: A 'good' credit score shows that you had a solid borrowing history, perhaps with a few small blips.

Getting in the best position to pass a credit check

Ensure any bills in your name are paid on time and in full. Check your credit file to make sure the information and data on there is correct. Make sure you are on the tenancy agreement at your current property.

You have late or missed payments, defaults, or county court judgments in your credit history. These may indicate you've had trouble repaying debt in the past. You have an Individual Voluntary Agreement or Debt Management Plan. This might suggest that you can't afford any more debt at the moment.

A lack of proof of address can result in a failed reference check, but there are legitimate reasons why a tenant might struggle to provide these. For instance, if they are moving to the UK from abroad or if they have been living with a partner but have not been added to the utility or council tax bills.

Credit checks

Your letting agent and some landlords will do a credit check to see if you've had problems paying bills in the past. They must get your permission first. It's less common for private landlords to do credit checks because they can make it take longer to rent out a property.

Going back to the credit score range, if your credit score is at least 670, you're at the start of the sweet spot. If it's within the fair credit score range (580-669), you may need to bring in a co-signer for your lease to reassure your landlord that you cover the rent payments.

Landlords use Equifax, Experian, and TransUnion to review your credit report and score. There is no industry standard for apartments, but your landlord may prefer using one report over another.

Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.

Do landlords prefer families?

In a recent study performed by Intus Lettings, 500 landlords were asked to reveal what type of person makes their perfect tenant. According to the poll, the majority of landlords would prefer a couple with no children, with 29% of landlords stating they would prefer to rent to that demographic.

The best type is the one who checks you out too

Nothing too evasive from their side but enough to show that they are serious diligent tenants that you can feel comfortable to trust that they will pay their rent in time and look after your property.

In general, six or more hard inquiries are often seen as too many. Based on the data, this number corresponds to being eight times more likely than average to declare bankruptcy. This heightened credit risk can damage a person's credit options and lower one's credit score.

If you regularly pay your rent on time and in full, you can have your good payment history reported to credit bureaus to help raise your credit score through a rent-reporting service.

A credit check for renting can take anywhere from a few minutes to one week. Most of the time, the delays are caused by the agent having to wait on a third party (for example an employer or previous landlord) to reply. Most agents should be able to give you an estimate if you ask.