what do they mean by credit checks?

[lorenika]

Hi everyone!

All the estate agents told me that before renting a flat, I'll have to pass a credit check (for which I have to pay a lot of money). Because I come from abroad, I only have a bank account here (opened 4-5 months ago) which is not even a normal account, it is one of those that you can use only to put in and withdraw money but you can't even get a visa debit card to pay in shops... (depressing..) The only credit history I may have is a couple of months paying my mobile phone contract... not much.. If they wanted to check my accounts in my country, they could find lots of information, but here.. what can they find here? Do you think they'll reject my credit check and I'll lose my money trying?

This is really difficult.. To get a mobile phone contract I had to pay ?100 deposit because they couldn't find any credit history (of course they couldn't! if no one allows me to open normal accounts, to get credit cards, to get credits, etc.. how can I have a a credit history??

My sister is going to rent the flat with me and she has had a bank account opened in the UK for the last 7 years (although she didn't use it much and she has never had any phone contract or anything that could show her credit history. Do you think she may pass the check? What is the best way to sort this out?

I'm sorry if the question seems stupid but I guess I'm new into this and I need to rent this flat!!!

Thank you all!

[Peckhamgatecrasher]

Try looking at a company called Experian. You can get your credit history for about ?2.50 and present that to the estate agents. It will only cover your time in this country though.

One of the easiest ways to gain credit rating is to have a store card, eg, Marks & Spencers. Generally they are not a good idea, but if you are careful with your spending/repayment, you can build up a credit history.

[Guest]

I'd suggest you ask the estate agent what their check covers. I just rented a flat through Wates and had to do one, but it wasn't like credit checks I've had done in the past.

The estate agent outsources it to a credit referencing agency and it covered any County Court Judgements (a claim someone files against you when you owe them money), last landlord (do you pay rent on time), employer (do you have a job and how much do you earn) and a character reference (anyone, a friend will do).

Hope this helps.

[????]

er, I'd use your sister as the other two bits of advice aren't any good for anyone with no credit history in the UK

[lozzyloz]

lorenika the other option is not to rent via an estate agent. Check out the property section on the forum or the classified section in the Standard or South London Press and deal direct.

[seanmlow]

As an estate agent myself (boo, hiss!), the credit check basically ensures that you can actually afford the rent. Ms B is 100% correct in all her info.

From personal experience of renting, they will want to see that you can cover all costs (rent, bills etc), comfortably.

It is difficult with gaining a credit history - the best way is to get a credit/store card. Use it, pay it off, etc, etc, to show you are a responsible borrower.

[Strawbs]

I agree dont use an agent if you can get away with it, in my view all of the 'admin' charges they charge are a complete and utter rip off... We have privately rented our last two places and it really is so much better..

Oh and we got our flat off the forum so its definitely worth taking a look, could save yourself some serious coin..

[Brendan]

seanmlow Wrote:

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> As an estate agent myself (boo, hiss!), the credit

> check basically ensures that you can actually

> afford the rent. Ms B is 100% correct in all her

> info.

>

> From personal experience of renting, they will

> want to see that you can cover all costs (rent,

> bills etc), comfortably.

Pardon me but, bullshit!

It's just another way of making money. What is the profit you make on doing these checks? What do you charge? ?50, ?100? When someone on this thread just said you can get one done for ?2.50.

If you want to check a person's ability to pay just look at their payslip or ask for a reference from their employer. All employers will give this info happily and for free. But I suppose you couldn't try to charge people for it then.

I would strongly advise that you try to rent privately Lorenika.

[lozzyloz]

A friend of mine rented a flat in Tulse Hill last year through a well known high street estate agent. Eventually the tenant stopped paying rent and they had to go through the long and costly process of getting an eviction through the courts. When they asked about the credit check that the EA had done, they discovered that none had in fact been done despite being charged for it. They wanted to sue but then found out that the flat renting department wasn't even owned by the estate agent and it would be pointless trying to recover lost rent and expenses.

Be careful out there. Some Estate Agents just aren't very scrupulous.

[PeckhamRose]

Interesting topic.

I have never had a credit card.

I am not rich, I live cheaply and save hard for the things I need.

And I am fortunate in that I don't have a mortgage.

However, I recently decided to open a new bank account with the Co-op and closing my boo-his Abbey account.

Co-op ran a check and have said there is an issue.

Not in my opinion there is not. Experian told them there was an issue and Co-op have stopped the application there.

How can there be an issue? I don't have a credit card and my debit card has never been mis-used and I have never had an overdraft and I have never borrowed.

I guess the answer is: "Of COURSE there is a credit issue!"

Why should I have to pay even a mere ?2.50 to find out what it is and put it right? I did email Experian but they basically said pay us ?2.50.

Back to topic. GOOD LUCK! Everyone's out to get you. I am not paranoid; I KNOW they're out to get me!

[macroban]

The "issue" is probably that you have managed your financial affairs prudently and don't have a high enough credit score.

[PeckhamRose]

Indeed (and thanks for that!) The other issue is I am not applying for credit or a credit card, just to open a Co-op bank account!

But back to topic. If your sister has been here 7 years she should indeed have a good credit history. The credit situation is so immoral. When my friend became unemployed she immediately got told her credit limit had gone up. I would make sure you stay good friends with your sister! I hope it works ot well for you.

[lorenika]

Thank you so much to everyone! All the info given is really useful.. I'll tell you how things go when I move to ED! I'm looking forward to it..

lorenika

[Keef]

Last time I rented in Dulwich we ghot it through Ludlow Thompson, and they credit checked us for free. One of my flat mates was Australian, and in a similar situation to yours. She just had to get a guarantor to say they'd foot any bills is she did a runner, so if you know someone who'd do that for you it may be easier.

[ClareC]

PeckhamRose Wrote:

-------------------------------------------------------

> Interesting topic.

> I have never had a credit card.

> I am not rich, I live cheaply and save hard for

> the things I need.

> And I am fortunate in that I don't have a

> mortgage.

> However, I recently decided to open a new bank

> account with the Co-op and closing my boo-his

> Abbey account.

> Co-op ran a check and have said there is an

> issue.

> Not in my opinion there is not. Experian told

> them there was an issue and Co-op have stopped the

> application there.

> How can there be an issue? I don't have a credit

> card and my debit card has never been mis-used and

> I have never had an overdraft and I have never

> borrowed.

> I guess the answer is: "Of COURSE there is a

> credit issue!"

> Why should I have to pay even a mere ?2.50 to find

> out what it is and put it right? I did email

> Experian but they basically said pay us ?2.50.

> Back to topic. GOOD LUCK! Everyone's out to get

> you. I am not paranoid; I KNOW they're out to get

> me!

The problem will be that you havent had credit therefore there is no proof how you manage it ie that you pay on time etc. Ludicrous I know but that is how these things work. The more credit cards you have, the better your credit is provided you pay on time!!! Beware though, the more credit checks you have in a short period weakens your credit record!!

[louisiana]

ClareC Wrote:

-------------------------------------------------------

> PeckhamRose Wrote:

> --------------------------------------------------

> -----

> > Interesting topic.

> > I have never had a credit card.

> > I am not rich, I live cheaply and save hard for

> > the things I need.

> > And I am fortunate in that I don't have a

> > mortgage.

> > However, I recently decided to open a new bank

> > account with the Co-op and closing my boo-his

> > Abbey account.

> > Co-op ran a check and have said there is an

> > issue.

> > Not in my opinion there is not. Experian told

> > them there was an issue and Co-op have stopped

> the

> > application there.

> > How can there be an issue? I don't have a

> credit

> > card and my debit card has never been mis-used

> and

> > I have never had an overdraft and I have never

> > borrowed.

> > I guess the answer is: "Of COURSE there is a

> > credit issue!"

> > Why should I have to pay even a mere ?2.50 to

> find

> > out what it is and put it right? I did email

> > Experian but they basically said pay us ?2.50.

> > Back to topic. GOOD LUCK! Everyone's out to

> get

> > you. I am not paranoid; I KNOW they're out to

> get

> > me!

>

>

> The problem will be that you havent had credit

> therefore there is no proof how you manage it ie

> that you pay on time etc. Ludicrous I know but

> that is how these things work. The more credit

> cards you have, the better your credit is provided

> you pay on time!!! Beware though, the more

> credit checks you have in a short period weakens

> your credit record!!

A friend has recently sold a multi-million pound business and has 'more money than I could ever spend', but was turned down for credit cards as he didn't have a mortgage or any other debts... It's a mad world.

[nunheadbelle]

PeckhamRose Wrote:

-------------------------------------------------------

> Indeed (and thanks for that!) The other issue is I

> am not applying for credit or a credit card, just

> to open a Co-op bank account!

>

I think the issue is that you DO NOT have a credit history. It can be just as bad not to have taken out loans and credit cards etc,. as it is to HAVE these and not paid them or fallen behind etc. If you have no credit history people get suspicious as to why.