This article deals with the two types of credit checks you should be concerned with.
- A credit check on your potential tenants
- Your own credit check
If you choose to manage the property yourself then there are some reputable companies that will take on this tedious job for you.
Websites such as: tenantverify.
co.
uk/ will credit check your tenants for a fee.
Your Own Credit Check If you want to be a property investor or developer for a living, then you will need to keep you own credit rating in tip top condition.
Becoming a landlord normally requires you to take on huge amounts of debt in the form of mortgages on your properties.
Even though the debt is normally secured on the property itself the banks will still normally want to see that you have a good credit history behind you.
If you have been refused credit in the past or think you might have credit problems then it might be a good idea to check your credit file before you proceed with looking for investment property.
Credit reference agencies like Experian or Equifax will provide you with your credit file for a small fee.
They can also help you to amend any mistakes on your credit file or give you advice for improving your credit rating.
There are also many companies that claim they can improve your credit file for a fee.
Normally this fee is at least a few hundred pounds.
Do not waste your time and money with these companies, they can do nothing for you that contacting the credit reference agencies Like Experian directly cannot do.
They will just be a middle person getting in the way.
It would be far better and more effective and it could save you hundreds of pounds to go to the credit reference agencies directly.