One of the biggest fallouts of a tightening of providing finance to people with bad credit was that many people were unable to obtain a mortgage to buy their home. This meant that an increasing number of people were pushed towards the letting and rental market in the United Kingdom. This has caused a change in the property market in the UK and for people who have access to finance, the buy to let market has provided a great opportunity to make money. This has further created a sense of injustice because it means that the people at the top of the economy and finance stakes are able to prosper while people further down struggle. However, this is the way of the world and it isn’t a new thing caused by recent economic issues.
If this was the end of the matter, things would be fine but now, people who have a bad credit rating, are now finding it difficult to rent property. This is a big issue because many people who are looking to rent are only doing so because they have already been knocked off from obtaining a mortgage or suitable finance for a property. Now that the same people are being told that they are facing difficulties in finding suitable rental arrangements, there will likely be a backlash with respect to the economic situation in the United Kingdom.
That is definitely something to keep an eye on but if you are being forced into renting and you are not convinced that your credit score is too healthy, there are steps you can take to improve your status. In an ideal world you wouldn’t have to take these steps, but of course, we are not living in an ideal world at the moment, so anything you can do to improve your status and standing has to be seen as being a positive step to take.
Some of the steps you should take when dealing with bad credit when renting include:
- Finding a Co-signatory or a guarantor
- Be honest and look to detail your progress
- Pay more as a deposit
- Get a roommate
- Show proof of income and set up a DD
- Finding a Co-signatory or a guarantor
One of the best ways to move forward with bad credit is to have someone standing beside you with respect to your finances. Much in the manner that a guarantor loan is the best way to improve your finances, if you can find someone who is willing to act as a guarantor or as a co-signatory when it comes to letting out a property, you will find that the landlord or agency will be more comfortable in allowing you to stay at the property.
Be honest and Look to Detail your Progress
When it comes to credit rating and your report, many things that impact on your rating may not be applicable to where you are now. This means that you may be able to indicate that you have developed significantly since those times. If you can indicate that you are in a much better financial position than your credit history would suggest, you can position yourself as a person who can be trusted at this point in time.
Pay more as a Deposit
This isn’t ideal but if you have the ability to place down a larger deposit, you may find that the landlord will be more comfortable with your ability to meet the payments every month. Again, your credit history doesn’t tell the full story of your finances or ability to pay, so if you can go the extra mile in showing that you can pay, you may find things easier when it comes to finding a viable rental option.
It may be that bringing someone else in as a roommate, splitting the rent and providing a landlord with two people to focus on could be of benefit in convincing them to allow you to let the property. Similarly, if you can show regular income and the fact that you are financially stable, you should find that a landlord will be a lot more receptive to providing you with the rental opportunity you are looking for.
You should also take steps to improve your credit rating and one way of doing this is by obtaining a guarantor finance loan. You can obtain the finance you need for the present day and by meeting the payments for the loan, you can go a long way to making a positive impression on your credit rating. Taking steps to improve your credit rating is always sensible and even though it can be a slow process to turn your finances around, it is worth persevering with.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.
