Updating post from Reddit.
A friend of mine has a spare room in their flat and is looking to add me to the contract for the remaining 6 months. This will be the first time I have rented and will be moving out of my family home (therefore not able to provide previous landlord reference). I am able to provide a character reference and employment reference as well as proof of income (gross salary is 3x the rent). I am also able to provide a guarantor. My worry is around the credit check, I have a good credit score, however I have an arranged overdraft that I end up using most months. I also took a personal loan out 6 months ago which I pay of £100 a month. I have never missed any payments, I do not own a credit card, and no CCJ's or anything like that. I just worry that because my finances aren't squeaky clean and I don't have much by way of savings, that I won't pass the credit check? It's all very new to me so any advice would be great!!
You can only apply and see what they say.
Your overdraft will help, but of-course going into it every month is a little red flag but shoudnt worry too much about it. Especialy since you have the loan which will add to your credit score. A credit card helps with credit score, but only if you use it wisely and pay it off every month.
Given your being added to someone elses tenancy, the landlord will be able to chase both or either of you for unpaid rent. So be cautious of that, however it could help you as it gives the landlord a bit more confidence.
Good Luck!
Thank you. I won't be moving until January so hoping to reduce my overdraft in meantime. I just wasn't sure if things like that would even show up on a soft credit check?
Dunno if you will pass or not, but adding a guarantor may obviate that (assuming LL wants to add another to an AST for remaining 6 months as would need to reissue contracts for all tenants)
But.
If you go into your overdraft every month and are living at home - do you think you will be able to afford the cost of the room plus bill shares etc? Or are you already paying as much to live in the family home?
Thanks. I do pay rent at home (not a huge amount) but I currently spend a fortune on travel commuting and this move would make me a lot closer to work. So can landlords see if you use your overdraft in their credit checks? The move won't be until January which gives me a bit of time to reduce my overdraft/try and save some money
If LL uses a credit check service they may only see a score LL may also ask for bank statements, in which case they would see the overdraft. But they would also see the travel that is to be reduced. Nothing stopping you sending an explain to the LL explaining how you can afford. Ie rent costs + bills, food etc - travel saved - rent paid to family = positive number
Assuming it is an AST, all signatories (you your mate and any guarantors) are jointly and severally liable for any missed rent , damage etc) meaning the LL can chase any of them for the other’s debts. Make sure you all know what this means
Eta. And good luck
The addition of a guarantor to your application will greatly improve your chances.
That's eased my mind, thank you!