Why Credit Scores Matter For Renters:

Whether you plan to rent or buy, your past rental and credit history will be meticulously looked over.   You want to take the steps to guarantee that when the time comes, you are able to move into your dream place.  Any major mistakes you made earlier in life could come back to haunt you, especially a criminal past.  As a property manager, I want the most qualified residents to move who will not have to be hounded every month for their rent or be causing a disturbance to other neighbors.  If the tenants are nice with no past problems but run into some bad luck, we will be willing to work with you to help solve the problem.  If the tenant has a history of problems or late payments, we may not be so flexible and will go by the letter of the law.

Your credit score is very important.  Make sure to pay all of your credit bills on time.  It has been proven that those people with higher scores tend to be less likely to be late or not pay their rent.  If several people are applying for the same place, we will choose the person with the highest credit score.  We understand that sometimes an unfortunate incident can happen; a divorce, foreclosure, etc.  If your credit is ruined, all hope isn’t lost.  You can have someone with a better credit history co-sign or pay extra money; typically first and last month’s rent plus the security deposit.  Obviously that could be very costly.  Some complexes may even lower or waive their security deposit based on your credit score and rental history. 

The website annualcreditreport.com is the only site where you can receive a free annual credit report.  The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies (Experian, Equifax, and TransUnion) every 12 months.  You can either get all three reports at once or you can space out the reports from the companies every four months.  The first option allows you to compare all three reports immediately for any discrepancies, but you can’t get another free check for 12 months.  The latter option lets you keep track of your credit score periodically throughout the year.  However, you still have to pay each credit reporting company if you want to receive your score.  The free report only shows your past and current credit accounts along with any collection accounts.

There are several ways to improve your credit score.  Make sure that all the information on your credit report is accurate.  Pay your bills on time.  Your credit report will show every time that you have made a late payment on a credit account.  Keep the amount of debt that you have below 50% of the available credit.  Keep your balances as low as possible.  A short credit history can also hurt your score.  If you have applied for too many accounts, that can negatively affect your score.  The Federal Trade Commission’s website (ftc.gov) has information on improving your score, identity theft, etc.   http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre03.shtm