interpretating credit report for letting property
I am letting out my property through a lettings agency.
I have just received a credit report on one of the potential tenants. This is the first time I have ever seen one of these reports and need help in understanding it and interpreting it.
The overall summary of the assessment for one of the potential tenant came back as "Accepted".
The categories looked at were:
1) Credit Bureau Report: "Declined", the person's Credit Risk Score was 234, whilst a pass mark (average credit score) would have been 250.
2) Residency Information: "Accepted"
3) Public Information, (i.e CCJ): "Accepted" (none against their name)
4) Affordability/Rent ratio: 2.5x; Suggested monthly rental limit is £1300pcm
5) Landlord Reference: "Accepted"
6) Employers Reference: "Accepted"
What has really got me concerned is the fact the Credit Bureau Report category came back as "Declined".
It says that a credit score is "a statistical measure of the likelihood of the applicant paying on time" This check is performed by putting the applicant's supplied personal details through a Credit Check Bureau.
I am really concerned now. The letting agency told me the report was fine, but I feel they are inclined to say that so they can get their money.
Does anyone have experience of all this? Experience of interpreting these reports?
Your help would be greatly appreciated. Thanks in advance
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