August is the peak month for moving home in the UK, but many tenants are finding it difficult to secure their ideal rental property. As competition intensifies, rental prices are on the rise—the average rent for a new let has climbed by 6.6% over the past year to £1,226—putting more pressure on people to have a strong credit score to access the best properties available.
CredAbility App, which helps over 100,000 people across the UK each month to improve their credit scores while offering a free weekly credit report, has provided top tips for those who fear that a strong financial history is essential to secure a home.
Nik Charalampous, Director at CredAbility App, comments, “While no minimum credit score is needed to rent in the UK, finding and securing an affordable property can be challenging if you do have a low credit score.”
Here are five tips from CredAbility App to help you rent in the UK, even with a poor credit rating:
- Be honest about your credit situation.
When applying for a rental property, it’s important to be transparent about your credit situation. Explain to the landlord or letting agent why your credit rating is poor and what actions you are taking to improve it. Being open and honest can help build trust and may encourage them to consider your application even with a low credit score.
- Offer a larger deposit.
Offering a larger deposit can help reassure landlords. This shows your commitment to the property and provides additional security for the landlord. However, this may not be an option for everyone, as a deposit equivalent to several months’ rent may be necessary to influence the landlord’s decision.
- Consider using a guarantor.
If possible, find a close friend or family member with a good credit history who is willing to act as a guarantor for the rental agreement. A guarantor agrees to cover the rent if you are unable to, which can provide peace of mind for the landlord and increase your chances of securing the property.
- Explore alternative rental options.
If finding suitable rental accommodation through traditional means proves difficult, consider other options, such as:
- Subletting a room in a shared house
- Renting from a private landlord who might be more accommodating
- Looking for properties in areas with lower demand
- Work on improving your credit score.
Improving your credit score, while it may take time, could help you access better rental opportunities in the future. Consider taking steps such as:
- Registering on the electoral roll
- Ensuring bills are paid on time
- Reducing any outstanding debt
- Checking your credit report for errors and correcting them
Having a poor credit rating does not mean you cannot find a suitable rental property, but you may need to be more resourceful, flexible, and put in extra effort to secure your desired home.
To check your Credit Score for free and receive guidance on managing your credit file, download the CredAbility App at www.credability.co.uk