credit checks

[horselady]

A couple I know had their house reposessed a few months ago. Obviously before it came to this, they got into a real mess with other bills, credit cards etc.
They have been staying with relatives and now want to rent a property, it's just the 2 of them . All debts are now sorted out and they never had default notices actually served for any of them, just the threat of one being served, so apart from the reposession, they are OK with companys and their bank has helped them a lot. Anyway, the thing they are worried about is the credit check agencies do when someone wants to rent a property, theirs is going to look bad and they think they will get turned down. Surely with debts the way they are, this is a common situation, what exactly is the search looking for,could they pay a big chunk of rent up front or something to reassure the landlord?

[bednobs]

usually if the person had a bad credit history, or no credit history, the agency would ask for a garuntor (can never spell that word). the alternative might be to look for flats in the paper, or in newsagents window as they dont usually do a credit check

[horselady]

Thanks bednobs, I had heard about the guarantor and we discussed offering to do it for them, but with the best will in the world, they are friends not family and it is a big responsibility.

[neenynanu]

I have a rotten credit record and had to get a guarantor. My dad did it for me, but obviously he trusts I will pay the rent each month (I do) because if I didn't he would have to. As it is, it doesn't affect him at all, it'[s just a name on a form.

Like you say, it's a big responsibility though. Surely they have family members who can sign?

[EverClean]

Please remember that it is NOT just a name on a form. If these peole get themselves into trouble again then this is registered on the credit file against the guarantor aswell as the person renting.

The reason that the landlord or letting agency will want a guarantor is that these people have a history of missing payments - although this is no guarantee that they will miss payments in the future this is the only way anyone has of assessing someone's ability to pay.

[cascarelli]

If someone has a bad credit record (and private landlord's check for this as well as agencies) they could offer a guarantor and/or pay 6 months rent up front if they can afford it. Most landlords would accept the money up front option.

Someone signing up to be a guarantor shouldn't take it lightly as, if the tenant defaults, then they will get chased and are liable for the money.