Before a tenancy is agreed upon, landlords will carry out comprehensive reference checks on their tenants. This includes an income check, previous landlord reference and a 6-year credit check.
These background checks help the landlord to understand if the tenant is the right fit for the property and can afford the rent. If the tenant has a poor credit history, such as previous debts or County Court Judgements, this could be an indicator that they will struggle to meet the rent payments.
Although this is not the case for every tenant, poor credit is considered a 'risk' for the landlord.
It's advised that all tenants check their credit score before referencing begins. Tenants with low credit scores or outstanding debts can request a guarantor in order to pass referencing and be accepted by the landlord.
Check your credit score for free with Experian.
If tenants proceed to referencing without declaring debts or County Court Judgements, they may fail referencing and no longer be able to rent the property. Tenants may also risk losing their holding deposit.