Credit Building > How to rent if you have bad credit

How to rent if you have bad credit

Wollit Team2 minute read · Updated 1st July 2024

Renting a property with bad credit can be difficult, but not impossible. Here is how you can pass a credit check and rent a property even if you have bad credit.

Why do landlords care about my bad credit?

Bad credit means that you have a history of missed payments, defaults, or other financial issues.

This can make landlords view you as a higher risk. They might wonder if you’re going to default on your rent payments or even simply pay your rent late. Considering the high demand for places to rent in the UK, running a credit check is another way that landlords and lettings agencies can choose between multiple potential tenants for the same property.

Also, most private landlords don’t run credit checks – it’s usually the lettings agencies that do it. This is because running a credit check is not free and can also take some time (submitting documents, etc.), which is far easier for large lettings agencies than for private landlords.

How does bad credit affect renting?

Because credit scores are used by landlords and letting agents to figure out if you’re a reliable tenant, a low credit score can lead to:

You may face fewer options for rental properties, as some landlords or agencies may not want to accept a tenant with a credit score under a certain threshold.
You may receive more rejections compared to someone with a better credit score, and you’ll see yourself passed over even if you can afford the rent.
You may even be asked for higher deposits or more extensive references.

What can I do to improve my chances of renting a place if I have bad credit?

To improve your chances of renting a place with bad credit, here are some things you can do:

Look for private landlords and avoid large agencies. Private landlords may be more flexible and less likely to run credit checks, making it easier to secure a tenancy. Use websites like Spareroom, Zoopla, or Rightmove, and make sure you’re talking to a landlord instead of an agent. But be a bit careful and meet them in person before transferring a deposit.
If your bad credit is due to a specific “adverse event'' like a default or a CCJ, contact the credit reference agencies (Experian, Equifax, and TransUnion) and add a note to your credit reports explaining why those adverse events happened. Landlords might understand if you missed a few payments because you were sick or lost your job.
Provide proof of a steady income, like recent payslips, to show that you’re financially stable. If you’re self-employed, get your SA302 forms and show two years of tax returns.
Consider signing up for private tenant insurance to further put the landlord at ease. You can get one from specialised companies like Urban Jungle, large insurers like AXA, or price comparison websites like CompareTheMarket.
Check if your local council offers a bond guarantee scheme, which can help you secure a tenancy by providing a guarantee for the deposit.
Ask a guarantor, like a family member or a friend with good credit, to co-sign your tenancy agreement.
If you don’t have a guarantor, offer to pay several months' rent in advance to reduce the risk for the landlord.
Consider downloading a credit-building app that can help you build your credit history and improve your credit score. Wollit is one such app – it works by reporting a fixed fee monthly subscription as a loan repayment to the credit reference agencies, which builds your credit history by showing that you can pay debt on time.
Download a rent reporting app to show landlords that you pay on time. This is another feature that Wollit also offers – it reports your monthly rent payments to Experian, letting you add your rental history to your credit file so that landlords can see that you’re a reliable tenant when they run their credit check.

While renting with bad credit can be challenging, following these steps should increase your chances of securing a tenancy. Remember to stay honest, use helpful tools like tenant insurance and rent reporting apps, and continue working on your credit score.