| What is a Credit Check? | | | | are kept on a tenants credit file for six years |
| A credit check is a simple process that takes | | | | from the date of the judgment. If a tenant has |
| place everyday. People are credit checked for all | | | | paid after one month of a CCJ being issued then |
| sorts of things from buying a mobile phone to | | | | the report will read as satisfied, if the tenant still |
| buying a car. A tenant credit check is much the | | | | has a CCJ in progress then the report will read as |
| same - it safeguards your property investment | | | | unsatisfied. If a tenant has an unsatisfied |
| by checking a tenant's financial responsibility. | | | | judgment on their record then they owe a |
| You would never knowingly let a tenant move | | | | creditor money and you may questions whether |
| into your property with a promise of "I'll pay you | | | | this tenant is reliable. |
| later". By securing a tenant credit report you can | | | | Bankruptcies: |
| make sure your tenant will pay on time based on | | | | Any Bankruptcies and insolvencies will be present |
| past financial history. | | | | on a tenant credit report. If a tenant has been |
| What does the tenant credit check tell me? | | | | declared bankrupt in the past this will stay on their |
| A credit score is really just a prediction on how a | | | | report for a minimum of six years and |
| tenant is likely to behave. The score is pulled | | | | sometimes even longer if the bankruptcy |
| together from a few different factors - whether | | | | exceeds six years. This affects a tenant applying |
| the tenant is on the electoral register, if they | | | | for credit, as they legally have to tell any lender |
| have any CCJ's and if they have any past | | | | that they are bankrupt. |
| bankruptcies or insolvencies. | | | | In terms of completing tenant screening and |
| Electoral register: | | | | renting a tenant your property all this information |
| Most credit reports will look at whether a tenant | | | | should come together to form a financial history. |
| is on the electoral register and this can tell us | | | | If a tenant is not on the electoral register, has |
| quite a lot. Credit reference agencies will use the | | | | numerous CCJs unsatisfied and was declared |
| information on the electoral register to verify a | | | | bankrupt in the past, it worth your while thinking |
| tenant's identity and prevent fraud. If a tenant is | | | | about whether this tenant is right for your |
| not registered then they appear not to exist with | | | | property. On the other hand if you have a tenant |
| no credit record, this can have a very negative | | | | with nothing outstanding and with no undisclosed |
| influence. | | | | address you can feel confident in making an |
| CCJ: | | | | informed decision. Getting Past landlord and |
| CCJ stands for County Court Judgment and they | | | | employers references is a great way to double |
| appear on a credit report if a tenant has owed | | | | check a tenant and get actual opinions from |
| money to a creditor in the past. These records | | | | people they have dealt with. |