Rent and Credit > How to rent with bad credit

How to rent with bad credit

Wollit Team2 minute read · Updated 16th September 2024

Renting a home in the UK can be hard if you have a bad credit score. A bad credit score means you may have missed payments on loans or bills in the past. This can make landlords worried about renting to you. But there are still ways to rent with bad credit. Here is how you can do it.

What does it mean to have bad credit?

“Bad credit” means that your credit score is low and shows that you may have had problems paying back money in the past. Usually this means having your score in the “Poor” or “Very Poor” credit score band. Each credit agency has different credit score bands, but usually these two are the lowest.

How does credit score affect renting?

When you apply to rent a home, landlords and letting agents often check your credit score. They want to see if you can be trusted to pay rent on time. A bad credit score can mean you get turned down or have to pay more upfront. This is why it's important to know your credit score and how it affects your ability to rent a house or flat.

How can I rent if I have bad credit?

Renting when you have bad credit is difficult but not impossible. Here are our best tips:

First of all, before looking for a home, check your credit report for any mistakes. If you find errors, ask the agency to fix them. You can easily get your free credit reports from Experian, ClearScore, and Credit Karma.
If you really do have bad credit, then try adding a “Notice of Correction” to your credit report. This is a short note that can explain why something bad happened in your credit history. Landlords might be more understanding if, for example, you missed a few payments because you lost your job.
Also, when applying to rent, be honest about your credit history. Many landlords appreciate honesty and may be willing to work with you if you explain what happened. Being open can build trust and show you want to be a good tenant.
Offering to pay several months' rent upfront can also help you get a home with bad credit. Many landlords like tenants who can show they have the money to pay rent on time. This may require saving a lot of money, but it can really improve your chances of being accepted.
If you can’t afford to pay so much rent in advance, try getting a guarantor. A guarantor is someone who agrees to pay your rent if you can't. Having a guarantor can make landlords feel safer about renting to you.
Also, try to avoid renting from letting agencies and try private landlords instead. Most private landlords do not run credit checks.
Finally, if you urgently need a home, your local council may be able to help. They can assist you in finding a suitable place to live and may have programs for people with poor credit.

However, long-term the best thing you can do is to improve your credit score. One of the ways to do this is by signing up to a credit-building service like Wollit.

One such service is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies. This helps you build your credit history and directly influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian. This can add another line in your credit report that shows lenders that you’re reliable and pay your bills on time, helping you make the most of your rent while you prepare to become a homeowner.