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Do you need a good credit score to rent?
There’s no set score you need to be able to rent a property. But keeping an eye on your financial health can help make the process easier. Find out more about credit scores, why they're important and how to improve yours.
What credit score do I need to rent a property?
There isn’t a specific credit score landlords will be looking for when you apply to rent a home. But you’re likely to stand a better chance if you have a ‘good’ or ‘excellent’ score:
A 'good' credit score shows that you had a solid borrowing history, maybe with the odd blip.
An 'excellent' credit score shows responsible borrowing and a near spotless record of meeting repayments and paying bills on time.
Here are the key numbers for each credit agency:
|
Credit reference agency |
Score |
Rating |
|---|---|---|
|
Credit reference agency Equifax |
Score 800+ |
Rating Excellent |
|
Credit reference agency Equifax |
Score 670 - 799 |
Rating Good |
|
Credit reference agency TransUnion |
Score 721 - 850 |
Rating Excellent |
|
Credit reference agency TransUnion |
Score 661 - 720 |
Rating Good |
|
Credit reference agency Experian |
Score 961 - 999 |
Rating Excellent |
|
Credit reference agency Experian |
Score 881 - 960 |
Rating Good |
If you’re not sure what your credit score is, it’s a good idea to check it out before you start looking for somewhere to rent. That way, if there are any issues, you can look at ways to put them right.
Most providers let you check your score online, with just a few personal details. At Halifax, we have a free tool called ‘Your Credit Score’ that lets you check your score with no impact on your credit file.
How can you improve your score?
- Avoid defaults – this is when you miss a repayment.
- Pay bills on time – otherwise it could cause your credit score to go down.
- Build up a credit history – a borrowing history builds up a credit file, which your score is based on.
- Be on the electoral roll – registering to vote can improve your score and help verify who you are.
- Avoid too many hard credit checks – too many applications in a short period for certain types of credit needing a ‘hard’ credit check can lower your score.
Why are credit scores important?
Lenders use credit scoring to help decide whether you’re likely to repay the money you borrow.
Your score is one of the things we look at when considering whether to offer you a loan, mortgage, credit card or other types of borrowing.
Building up your credit score increases your eligibility for the future.
Don’t try to hide issues with your credit score – the best thing is to be honest with the landlord and offer evidence to show any blips are in the past.
Let’s take a closer look
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Landlords want to know that you’re going to pay your rent – in full and on time.
If your score is low, a landlord may be hesitant to rent to you if they think there’s a risk you’ll miss future payments.
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If you have a low credit score there are things you can do to which may help you to rent.
Pay more upfront
A landlord might agree to take a few months’ rent in advance to assure them you can afford to live at the property. Make sure you get it in writing and have a contract in place if you go down this route.
Evidence of your salary
If you’ve got a steady job and are now earning more, sharing your pay details might convince a potential landlord that you’re in a stable financial situation.
Use a guarantor
A landlord might let you use a guarantor who will agree to pay the rent if you can’t afford it.
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A reference from your employer to show you’ve got a regular income or a landlord to vouch that you’re a good tenant might be enough to convince a landlord.
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Sharing the bills can really take the pressure off your finances. If you’re ready to move in with a partner, or have a friend who needs a place too, think about finding a place together.
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