Difference between affordability & referencing

Contrary to what many believe, there are many differences between a tenant reference and an affordability check. 

Affordability differs from referencing because it considers the current income, loan, debt repayments, and expenditures of an individual, directly from their bank accounts using an algorithm, to assess if a potential tenant can meet their monthly financial commitments. Whereas reference checks solely look at previous CCJ, IVAs, credit scores, and bankruptcy. It does not consider renters' current financial circumstances.

Below we have provided a comparison table showing these differences:

Comparison Table
Affordability Referencing
  • Confirmation of Income
    (Previous 3 Months)
  • Credit Score
  • Calculation of Expenditure
  • CCJ & Bankruptcy Check
  • Disposable Income Assessment
  • Individual Voluntary Arrangement
  • 40% Rental Affordability check
    (Fully customisable with CubicLease)
  • Current & Previous Address verification


Using Open Banking, we can assess the affordability of a potential prospect. This assessment happens instantly once a prospect undergoes verification in-app.

For effective risk management, it is advised to combine an affordability check and a reference check. This is similar to current practices in the car finance and the mortgage markets.