Credit Checks

A tenant credit check examines a prospective tenant's financial background. It helps landlords assess whether tenants are likely to pay rent on time and highlights red flags like unpaid debts or County Court Judgments (CCJs).

Key takeaways

• Credit checks help spot financial risks early and protect your tenancy
• Most tenants should earn at least 2.5 to 3 times the monthly rent
• Some landlord insurance policies require tenants to pass credit checks
• You need written consent before accessing a tenant's financial data
• Landlords must cover the cost of credit checks (cannot charge tenants)
• Landlord associations can provide credit checks for as little as £12

Why carry out credit checks?

• Spot financial risks early - identify tenants with a history of late or missed payments
• Support affordability checks - most tenants should earn at least 2.5 to 3 times the monthly rent
• Protect landlords' insurance - some policies require tenants to pass credit checks

What does a credit check include?

Typical reports cover:

• credit score snapshot (overall financial reliability)
• outstanding debts (current borrowing levels)
• adverse financial history (CCJs, bankruptcies, debt relief orders)
• credit utilisation (how much available credit the tenant is using)
• linked addresses (verifies consistency in address history)

How to run a credit check

1. Get written consent

Legally required before accessing a tenant's financial data.

2. Collect the tenant's information

Full name, date of birth, and address history (usually 3 years).

3. Choose an agency

Landlord associations can provide tenant credit checks for as little as £12, such as the NRLA - The Home For Landlords.

4. Review results and decide

Look for missed payments, debts, or inconsistencies in address history. Weigh results alongside references and proof of income.

Important

Under the Tenant Fees Act 2019, landlords and agents cannot charge tenants for credit checks. Landlords must cover the cost.