If you want to rent a property in the UK then almost all private landlords and letting agents will ask for a reference which will include a request for information about your credit history.

Whether you think this is fair or not, landlords are keen to know if a tenant moving into their property has a history of paying their bills on time.

But this excludes several groups of people, including those who have not rented before or have only recently started their journey into the world of credit (known as having a thin credit file) plus people who have a poor credit history.

It also includes international students and foreign professionals who want to rent a home while they work here, neither of whom are likely to have any credit or renting history in the UK.

Landlords are more likely to reject all of these people, and this makes finding a property to rent problematic.

So if you’re facing difficulties finding a property to rent because you have failed a credit reference check, here’s what you can do.

Get a family member or friend to be a guarantor

Letting agents and landlords will rent properties to you if someone else who does have a good credit history agrees to be your guarantor.

This can be a friend or family member, who will be asked to sign a guarantor document that commits them to pay your rent if you are unable to, including any rent arrears, and also pay for any damage you cause to the property.

But remember this is a serious position to put a friend or relative in; they are jointly responsible for paying the rent on the property as well as damages.

Pay for a guarantor service

If you don’t have a friend or relative who’s prepared to stand as your guarantor, then there are several companies who, for a price, will stand as guarantor for you. The prices vary but expect to pay approximately £300 or more depending on your circumstances.

Also, you will be asked to sign a contract or ‘guarantor deed’. Most of these companies will ask you for proof of identity and salary and require that you earn at least 1.5 times your rent. If your rent is £600 a month then you’ll need to be taking home at least £900 a month after tax.

Upgrade your credit history

Another option is to improve your credit history and, while you do it, continue living in your current accommodation. There is no rule of thumb about how long it takes to improve your credit history, but Experian says it can take at least three months for new information about your credit history to filter through to its system.

It’s reasonable to assume that you’ll need approximately six to 12 months of new credit history to improve your score.

This is also where CreditLadder can help. If you are paying rent, then your rent payments can be recognised and added to your credit file. In fact, CreditLadder is the only way in which tenants can have their rent reported to all three of the main Credit Reference Agencies in the UK.

Pay your rent in advance

The easiest way to circumvent the guarantor system is to pay your rent in advance, usually in a lump sum representing between six and twelve months’ rent. It’s how many international students secure places to rent in the UK.

This kind of money is difficult for most young or credit-impaired tenants to amass who, by definition, are unlikely to be awash with spare moolah. The final option is to ask a friend or family member to lend you the money to pay your rent in advance.

Rent in a shared house

Another way to circumvent the credit referencing process is to move into a shared house which already has a tenancy running but whose tenants need to refill their ranks after someone has moved out.

Because all tenants in a shared house are responsible ‘in common’ for the rent, the landlord or letting agent may be happy to let you move in without credit referencing you, assuming the other tenants agree.

Find a bond guarantee scheme

Many councils, housing associations and charities offer a bond guarantee scheme to support those most in need back into the private rented property market.

The council will step in, agree to be your guarantor and pay your rent if you cannot pay it, and foot the bill if you cause any damage to the property. In general, these schemes are designed to help those in danger of becoming homeless, or who are homeless, secure a property within the private rented sector, so they’re not for everyone.

CreditLadder can help you improve your credit score

If you want to improve your credit position by reporting your rent payments, CreditLadder is the only way to improve your credit score and position across all four of the main Credit Reference Agencies in the UK, namely Experian, Equifax, TransUnion and Crediva. Building up a high credit score has a lot of benefits, including helping you access finance at better rates - this can also help save you money.

CreditLadder also runs a free mortgage application service in partnership with Tembo which will tell you how much you could borrow.

Remember the information provided in this article is for information purposes only and should not be considered as advice.