Credit checks and renting

Lesson 11 of 12 in our free Credit Scores & Files guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Credit Scores & Files is free for everyone.

Questions you'll answer

Mo's credit file is thin and the letting agent hesitates. Which option is genuine?

Red flag: “I'm currently abroad so viewings aren't possible” — Can't view = classic rental scam. Never pay for a place no one can show you.
Red flag: “, but to secure it please transfer £950 deposit today” — Pressure to pay before you've seen anything or signed anything.
Red flag: “plus £60 for a 'credit check' to my personal account” — Paying a stranger's personal account for a credit check is a big red flag.
Red flag: “and send a photo of your passport and bank card.” — Never send bank card photos. Your ID plus card details = identity theft starter pack.
Myth: “Letting agents in England can charge you a fee for running a credit check.” — The Tenant Fees Act bans most fees in England, including referencing fees. Wales has similar rules. Holding deposits are capped at one week's rent.
Fact: “A tenancy deposit in England should be protected in a government-backed scheme.” — Your landlord must protect it and give you the details. Deposits are capped at five weeks' rent for most tenancies.
Myth: “Missing rent payments can never affect your credit file.” — Some landlords and agencies report rent, and unpaid rent can lead to a court judgment that does show.