credit check

[slocjo]

hi. my daughter who is 22, is going to rent a house with 2 friends, she told me that the estate agent whats �120 each to do a "credit check". Is this right? also how can they check when she has no debt, loans, cards etc. any one with a answers??

[pink-kittens]

Yes, this is standard practice when private renting
Have to say as she has a zero credit rating then it's a possibility she may be refused

[Peeler]

Sounds like a rip off to me. Ask them what checks they are doing as Experian and Equifax which are the main ones I use cost a fraction of that amount.
Ethel, help?

[pink-kittens]

It's not a rip off, it is standard practice - usually they call it an admin charge and it can be a lot more than �120

[CheekyChops]

She many not have any loans, credit cards etc but the estate agent / landlord doesn't know that!

They are checking that she doesn't have a string of defaults or CCJ's against her name, that she doesn't have a record of not paying and that she hasn't been bankrupt.

I paid �60 when I rented a house but that was 10 years ago so �120 is probably the going rate.

[purplepoodle]

Yep, I've just been through the same thing. It cost �180 for 2 of us. I also don't have any credit history but I passed OK.

They do ask for a ridiculous amount of documentation though - ID, proof of address for every house you've lived at for the last 3 years, references from previous landlords, employers and family members.

I'd imagine the only reason they'd refuse you is if you've got CCJs, IVAs, etc. Not having any credit history shouldn't be a problem in this case, as you're not actually applying for credit. It's more of a full background check.

[Peeler]

"It's not a rip off, it is standard practice - usually they call it an admin charge and it can be a lot more than �120 "

With respect it is a rip off as the checks cost less. Who are they checking with? Just because people are paying too much doesn't mean that it is right.

[Eve.]

It sounds like a general admin fee rather than just for credit checks. Some charge one fee for everything and one place I used charged an admin fee then a separate fee for each credit check.

If she doesn't have a credit history or has a bad one or hasn't been in a job for more than a certain time, often 3 or 6 months then she may need a guarantor.

Credit history is a funny thing. When my ex and I went to ask about possible bank loans as a means of financing a car puchase at our respective banks, I, having no credit cards, loans, bad history etc... and on a far higher salary didn't get anywhere near as good a deal as my ex who livces in his overdraft and has credit card debts as he had a credit history and I didn't!

When I had a flat I was about 27, a qualified solicitor, no credit cards, loans etc... but as I'd just started a new job and hadn't been there 3 months I had to have a guarantor.

I'm flat hunting at the moment and it's rare to find agents who don't charge a fee nowadays. I've found ones lately ranging from �60 to �150, often with VAT on top.

[slocjo]

thanks for the info.ref. �120 thats each. so �360 total.

[Eve.]

It's also an extra way of raising more fees on top of recouping the money spend on credit checks.

Business is not great at the moment on the sale and purchase side so they probably welcome the money.

[gina32]

and you can do your own for �1 so i would agree to it being a rip off!

[Twenty20]

gina32, you may be able to do your own for �1 but others can't. The standard cost to a landlord for doing this is about �30 - thats the actual cost and it includes following up references etc. There are more expensive versions which go into more detail. On top of that an agency would probably charge for their time, which might amount to another �60 or so. Private landlords probably wont charge for their time though some do.

If you don't like the costs of going through an agency then try looking for a private landlord, its normally cheaper for the tenant.

[gina32]

i know it would cost more but what im saying is she could get one herself and she would be able to see for herself if everything was ok, and then go ahead with the firm doing it, maybe the agency would accpet hers whilst waiting for ther own to come through, if anyone follows that