Renting property while under debt review
Since its introduction into South Africa, debt review has helped millions of consumers get on top of their debt. But even though it is seen as a big help when it comes to managing finances, being under debt review can make you feel like you are limited when it comes to important decisions. Renting property is one of them.
Can I still rent a property if I’m under debt review?
Yes. Because debt review is not a credit agreement, you can still rent a property if you’re under the debt review process.
But what if property agents and landlords do a background check?
Most property agents and landlords will perform a credit check when you’re applying to rent a property. This usually includes all your credit agreements, defaults, judgements and if you’re under debt review.
▶︎ However, if your credit rating is low and your application is not successful, it’s usually because of other factors. Landlords and property agents are NOT allowed to deny you a rental opportunity based on your debt review status only.
How can I make it easier to secure a lease while I’m under debt review?
- Ask your debt counsellor to provide a potential landlord or agent with proof of budget that proves that you can afford the monthly rental amount.
- If you can afford it, offer a double deposit.
- Ask someone you trust to co-sign as surety.
I’m looking at buying my own home, but I’m under debt review.
▶︎ What now?
Remember that in order to convince a bank that they should approve a home loan to buy your own home, you must prove to them that you have a good and solid credit rating and the affordability to pay back the home loan instalments each month.
If you’re at the end of the debt review process with Meerkat, Contact Rent to Buy Rent 2 Buy Indicator to see if you meet their criteria.
Not under debt review but struggling with debt? We will contact you.