Yes, you can rent a house with adverse credit, though it may be more challenging. Adverse credit means you may have a history of missed payments, defaults, or even bankruptcy, which can make landlords cautious.
However, many people with adverse credit still find rental homes by preparing well and exploring specific options to reassure landlords. While credit issues might limit some choices, understanding the process and potential solutions can improve your chances.
What Checks Do Landlords Do?
Most traditional landlords and shorter term letting agencies perform background checks to understand a tenant’s financial reliability. This typically includes a credit check, which shows if you’ve had any issues like missed payments, County Court Judgments (CCJs), or bankruptcy. A low credit score can raise concerns for landlords about your ability to pay rent on time.
In addition to credit checks, landlords often verify employment and income to ensure you can afford the rent. Some may ask for bank statements, references from previous landlords, and proof of income, such as a pay slip. According to Experian, nearly 50% of landlords conduct credit checks as part of their tenant screening.
Your Options if You Are Rejected Due to Credit
If a landlord rejects your application due to adverse credit, there are still several options that might help you secure a rental property according to this guide. Landlords may consider applicants with low credit scores if additional security or assurances are in place.
1. Get a Guarantor or Cosigner
One common solution is to find a guarantor, sometimes called a cosigner. A guarantor is someone with a stronger credit history who agrees to pay the rent if you cannot. This reduces the financial risk for the landlord, as they know someone else is responsible if payments are missed.
A guarantor is usually a family member or close friend who trusts you to manage the payments. However, they must also pass a credit check and be financially stable to be accepted by the landlord.
2. Offer a Larger Deposit or Advance Rent
Offering a larger deposit or paying several months of rent upfront can show the landlord you’re committed and financially stable, even if you have adverse credit. For instance, paying three to six months’ rent in advance provides security and can make the landlord more willing to overlook your credit history. According to a survey by SpareRoom, around 27% of tenants with bad credit succeeded in renting after offering more money upfront.
3. Search for Private Landlords
Private landlords, rather than agencies, may be more flexible and understanding about credit issues. They may be willing to skip the formal credit check if you can demonstrate that you’re financially stable in other ways, such as showing steady employment and income. Speaking openly with private landlords about your situation and showing evidence of reliable income might increase your chances.
4. Look for Rental Properties That Accept Bad Credit
Some rental properties and agencies specialize in working with people who have bad credit. These landlords may set specific conditions, such as a guarantor or a larger deposit, but they are more open to tenants with adverse credit. Searching online or speaking with local letting agents can help identify these options.
Final Tips for Renting with Adverse Credit
If you have adverse credit, being honest and prepared is essential. When applying, explain any past financial issues briefly and emphasize how your situation has improved. If possible, bring documents that show you have been financially stable, such as recent bank statements or a reference from a previous landlord. Taking proactive steps and being transparent can reassure landlords that you’re a responsible tenant.
Renting with adverse credit is possible, but it may take extra effort, preparation, and some negotiation. By considering options like using a guarantor, paying upfront, and being transparent with potential landlords, you can improve your chances of securing a rental property.
