Credit Reports for Landlords
How to run a credit check on yourself or a potential rental tenant. This page contains affiliate links. Find A Mortgage Online Ltd may receive a commission for qualifying purposes.
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Your credit history and score is a really important part of any finance application you make. Even if you think your score is perfect, your advisor is going to want to see and understand your report and make sure they’re supporting you in the right way.
Author: Pete Mugleston
CeMAP Mortgage Advisor, MD
Credit reports can be really useful if you’re a landlord or an aspiring landlord. They can help you check your own credit and establish whether potential tenants are safe to let.
In this article, you’ll learn how to run credit checks, why they are essential and more.
How to check your credit reports if you’re a landlord
You can check your credit reports for free from our credit reports hub. Here, you can access a free trial from one of the UK’s leading credit report providers, Checkmyfile, and cancel your trial anytime.
This credit report provider offers a multi-agency report comprising data from Equifax, Experian, and Transunion, the UK’s leading credit reference agencies.
What are the benefits of this?
Downloading your credit files is particularly useful if you need to apply for a buy-to-let mortgage to support your property investment business.
Here are the main benefits:
- Identify credit issues that could impact your mortgage eligibility
- Assess how property investment has affected your credit rating
- Check if you have been a victim of fraud
- Optimise your files to improve your creditworthiness
How to run a credit check on a tenant
One option is to ask the tenant to activate a free trial on Checkmyfile and access their credit report. They can download their report using this service and send it directly to you for review, and cancel the trial at any time.
You can also perform a credit check on the tenant’s behalf but must obtain written consent. The written statement they provide must include their signature.
They will need to provide you with the following information:
- Full name
- Date of birth
- Address history (last 2-3 previous addresses recommended)
With this information, you can access information about your tenant through the credit reference agencies, although some insist that the tenant does this.
Download your credit reports today.
Whether you want to order a credit check on yourself or a potential tenant, use the link below to access a free trial with our affiliate partner. This will allow you to access a multi-agency report comprising data from the main credit reference agencies.
Check My File
Access your credit report, view insights into your credit history, correct errors, and take action to improve your score. Get prepared for your mortgage application today. Free for 30 days then £14.99 per calendar month - cancel anytime.
FAQs
First and foremost, instances of bad credit can be a red flag about a tenant’s financial stability. This includes issues such as missed payments, rental arrears, CCJs, IVAs, or defaults. Some landlords choose to speak to the tenant to establish the circumstances surrounding these issues before deciding on whether to let the tenant.
You should also consider their right to rent, employment status, rental history, and references and compare this to the information on their credit files.
Yes. It is important that they do this, as you will need to know that they are financially stable enough to support the tenant in the event that they are unable to pay their rent or provide you with compensation in the event that they cause unlawful damage to the property.
