Tenant credit checks: what you can and can’t run

UK-wide. The discrimination rules referenced are those introduced in England by the Renters’ Rights Act.

What the check actually shows

What comes back	How much it tells you
County court judgments	A lot. An unsatisfied CCJ for a debt is the single most useful item on the report. Stays for six years.
Bankruptcy, IVA, debt relief order	A lot. Relevant, and worth discussing rather than refusing on reflexively.
Electoral roll and address history	Useful for confirming identity and picking up gaps
Existing credit commitments	Useful for affordability — large monthly commitments reduce what is available for rent
Payment history on those accounts	Moderately useful. A pattern of missed payments is a signal.
The score itself	Less than people think. It measures credit behaviour, not rent behaviour, and it punishes thin files.
Previous rent payment history	Not included. Rent is not routinely reported to credit agencies, which is the fundamental limitation.

Consent and data protection

A credit check is processing personal data, and a hard search leaves a footprint on the applicant’s file. Three things you must do:

1. Get explicit consent, in writing, before you run it. A tick box buried in an application form is weak; a clear, separate statement is better.
2. Tell them who will run it — the agency or referencing provider — and what you will use it for.
3. Collect only what you need, and delete unsuccessful applicants’ data once the decision is made. Keeping a folder of rejected applicants’ credit reports indefinitely is a data protection problem with no upside.

Applicants are entitled to know what came back, and to see their own file and correct errors. Errors are common enough that a flat refusal without telling someone why is both unfair and, in practice, a way of losing good tenants to a mistake.

Using the result lawfully

Since 1 May 2026 it has been unlawful in England to refuse an applicant because they receive benefits or have children, or to apply different terms to them. That has a direct effect on how you use a credit check:

• Run the same check on every applicant. Not just the ones you have doubts about.
• Apply the same threshold to every applicant. Write it down before you advertise.
• Do not require a guarantor only from some groups. Requiring one from everyone who fails the same affordability test is lawful; requiring one from benefit claimants is not.
• Assess affordability on all household income, including benefits. See the ban on benefit discrimination.
• Record the reason for every decline. A decision you cannot explain later looks like the decision the law prohibits.

What to do with an imperfect file

What you find	Sensible response
Thin file, no adverse data	Usually fine. Common for young people, recent arrivals and those who avoid credit. Lean on income and landlord references instead.
Old satisfied CCJ	Ask about it. A judgment from four years ago, paid, with clean references since, is a story rather than a risk.
Recent unsatisfied CCJ	A genuine concern. Consider a guarantor, and be consistent about when you require one.
Current bankruptcy or IVA	Discuss it. An IVA with regular payments and stable income can be a better prospect than an unmanaged mess.
Address history gaps	Ask. There is usually an ordinary explanation — living abroad, living with family, a period in hospital.
Identity mismatch	Resolve before proceeding. This is the one to take seriously.

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