Renting with bad credit

How does tenant referencing work?

The landlord, their agent or a referencing company checks who you are, whether you can afford the rent, and your history. Your right to rent is checked separately, and that one is a legal requirement. Referencing itself is a commercial decision by the landlord, and each sets its own bar.

A typical reference covers:

• Identity and your address history.
• Income: most agents look for annual income of about 30 times the monthly rent, before tax.
• A credit check, looking for county court judgments, insolvency and defaults.
• A reference from your employer, or accounts and tax returns if you are self-employed.
• A reference from your current or last landlord.

You cannot be charged for any of it. Referencing and admin fees are not on the Tenant Fees Act’s list of payments a landlord or agent can take, so they are banned.

Work out the rent an agent is likely to accept on your income and how the right to rent check works.

What counts as bad credit to a letting agent?

Mostly specific events rather than a score. County court judgments, bankruptcy, individual voluntary arrangements, debt relief orders and defaults are the things that tend to fail a reference. A thin credit file, with little history either way, is a different problem, and often solved by a guarantor.

• County court judgments stay on the public register for 6 years. Paid in full within a month, one can be removed; paid later, it is marked “satisfied” but stays visible for the 6 years.
• Bankruptcy, IVAs and debt relief orders appear on the Individual Insolvency Register, and are usually removed within 3 months of the case ending.
• Defaults stay on your credit file for six years from when they are recorded, then drop off automatically.

Will a CCJ stop me renting?

It can with some agents, especially if it is recent and unpaid. A judgment that has been paid is easier to explain than one that has not. If you paid it after the first month, you can ask the court to mark it as satisfied and apply for a certificate of satisfaction, which costs £19, to show an agent it is settled.

Settling it and having the proof in hand before you apply is worth more than any explanation you give afterwards.

Should I check my own credit report first?

Yes. Checking your own report is free, does not affect your credit rating, and shows you what a referencing check is likely to find. It also gives you the chance to get errors corrected before a landlord sees them.

Should I tell the agent about my credit history?

Yes, and before you pay a holding deposit. Giving false or misleading information is one of the few reasons a landlord can keep your holding deposit, so hiding a judgment that a check will find anyway puts a week’s rent at risk. Telling them first lets them say whether a guarantor would solve it while you can still walk away for free.

What helps when you explain:

• What happened, briefly, and when.
• That it is paid or being paid, with proof.
• Your rent record since: bank statements showing rent paid on time are persuasive.
• Your current income, and a guarantor if you have one lined up.

What “let agreed” means and when a holding deposit must be refunded.

Do I need a guarantor?

Often, with a poor credit history. A guarantor agrees to pay the rent, and sometimes other costs, if you do not. Agents commonly want a guarantor to earn about 36 times the monthly rent, to have good credit themselves, and often to live in the UK. Before they sign, they should read exactly what they are liable for, and for how long.

GOV.UK notes that a guarantor agreement signed before 1 May 2026 may be affected by the Renters’ Rights Act reforms, and suggests guarantors review any existing agreement. Check the home before you guarantee it.

What if I do not have anyone to be a guarantor?

Some companies act as a paid guarantor instead. You pay them a fee and they guarantee the rent to the landlord. It can be offered as an option, but a landlord or agent cannot require you to use a professional guarantor service: GOV.UK is explicit that it is optional.

Compare the fee with what else it would cost you to get the tenancy, and read the terms on what happens if they have to pay out, including whether they can then recover it from you. The same applies to deposit replacement products, which a landlord also cannot require.

Can I pay rent upfront instead?

Not to get the tenancy. Since 1 May 2026 a landlord cannot ask for, encourage or accept any rent before the tenancy agreement is signed. Between signing and the tenancy starting they can ask for one month’s rent, or 28 days’ where rent is paid weekly. Once the tenancy has started you can choose to pay early, but a landlord can’t require it. The exceptions are narrow, such as a tenancy arranged by the council for someone who is homeless.

If you are asked for more, keep the messages and tell your council, which can make the landlord repay it.

Can they ask for a bigger deposit because of my credit?

No, not above the cap. The tenancy deposit is limited to five weeks’ rent where the annual rent is under £50,000, and six weeks’ where it is £50,000 or more, whatever your credit history. A holding deposit is capped separately at one week’s rent.

Work out both caps for your rent, and check the deposit is protected once you have paid.

Can a landlord refuse me because I am on benefits?

No. Since 1 May 2026 a landlord or agent cannot refuse you, or put you off, because you receive benefits or have children. They can still check affordability, but GOV.UK says they should set the same income requirement for everyone, count benefits as income, and not ask only benefit claimants for a guarantor. A council can fine up to £7,000.

If it happens, keep dated copies of the advert and every message, and report it to your council.

What else can I do if I keep failing referencing?

Lower the bar you are being measured against. A cheaper home, or a room in a shared house where you are assessed only on your own rent, can bring you under the income threshold. Some private landlords make their own judgement on your circumstances rather than relying on a pass or fail. And free advice can help you work out your options.

• Shelter — free advice on private renting, including when you cannot find a guarantor.
• Citizens Advice — help with housing and with the debts behind a poor credit record.
• If you are at risk of homelessness, contact your council’s housing team early.