August is the most popular month for moving home in the UK, but tenants are finding it increasingly difficult to secure their ideal rental property. Competition for housing is pushing prices upwards—the average rent for a new tenancy has increased by 6.6% over the past year to £1,226—placing greater emphasis on having a strong credit score to secure the best options on the rental market.
The CredAbility App, which assists over 100,000 people in the UK every month in improving their credit scores while providing a free weekly credit report, has compiled top tips for those concerned that a strong financial history is necessary to find a place to call home.
Nik Charalampous, Director at CredAbility App, notes, “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 upfront about your credit situation. Explain to the landlord or letting agent why your credit is poor and what steps you are taking to improve it. Honesty and transparency can build trust and encourage them to consider your application despite a low credit score.
- Offer a larger deposit.
Offering a larger deposit can provide reassurance to landlords. This demonstrates your commitment to the property and offers additional security for the landlord. However, this option may not be feasible for everyone, as a deposit equivalent to several months’ rent might be required to sway the landlord’s decision.
- Consider using a guarantor.
If possible, ask a close friend or family member with a good credit history to act as a guarantor on the rental agreement. A guarantor agrees to cover the rent if you cannot, which can provide peace of mind for the landlord and increase your chances of securing the property.
- Explore alternative rental options.
If you struggle to find suitable rental accommodation through traditional channels, consider other options such as:
- Subletting a room in a shared house
- Renting from a private landlord who may be more flexible
- Looking for properties in areas with lower demand
- Work on improving your credit score.
While it may take time, improving your credit score can help you access better rental opportunities in the future. Steps you can take include:
- Registering on the electoral roll
- Paying bills on time
- Reducing outstanding debt
- Checking your credit report for errors and correcting them
Having bad credit doesn’t mean you won’t find a suitable rental property, but it may require being more resourceful, flexible, and putting in extra effort to secure your dream home.
To access your Credit Score for free and receive advice on how to manage your credit file, download the CredAbility App at www.credability.co.uk
