I’m looking to rent a flat, how do bank references work?

Me and my girlfriend are looking to rent a flat, we viewed one on saturday and we are looking to accept, the estate agent said about getting references from the bank and my employer, i know that the one with my employer will be good, but my credit rating is poor, whereas my girlfriends is good but is currently paying a loan off and a store card. What is the process of a bank statement?

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3 Responses to “I’m looking to rent a flat, how do bank references work?”

smallmidgetninja Says:
October 4th, 2009 at 6:52 am
Its not a credit check they are doing, the landlord wants confirmation that you are working (steady income) and that your bank account is active and not constantly over drawn (so the rent will be paid).
Omstarts Says:
October 6th, 2009 at 5:27 am
It varies from agent to agent - some will be satisfied at seeing a recent bank statement while others (only for very expensive lets I understand) will demand a credit history check.

I think actually they may simply require the following details - account managers name, address of bank, bank account number and sort code - but even then, this is to merely verify you have a valid account, and you are who you say you are. It is to also make sure you have incoming amounts and you are not living on an overdraft.

Legally, simply giving your GF account is fine. But that does put the risk on your GF - you could simply arrange to pay your money into her account each month.
Birdie2006 Says:
October 9th, 2009 at 12:43 am
Doesn’t sound like a credit check, and a credit check would not count those anyway, it only looks into whether you have defaulted on payments over a long term (upwards of 6 months) or collected any CCJ’s.
The bank reference is normally a letter from the bank stating their opinion about whether you can cover the rent after taking in to account your other obligations. It’s not binding nor is it their official opinion but if the bank states that they ‘believe’ you will be able to meet the obligation of the rent then it’s normally good enough. The bank will review your accounts and generate a simple letter. I would be careful though, they charge for privilege of doing this.