How Your Credit Rating Affects Obtaining an Apartment
March 22nd, 2011If you’re on the lookout for a new apartment, you should know that your credit rating can keep you from getting the apartment you want. Almost all independent landlords and apartment complexes will perform a full background check on applicants; this includes a full credit check, which shows them your credit payment history and bills you have defaulted on. If your rating is very poor, many landlords will either not accept your application or will ask you to pay a very high security deposit, often including the first and last month’s rent upfront. Fortunately, however, there are ways around getting denied or having to pay such hefty fees.
The first and most obvious way to fix this problem is to improve your credit rating before you begin looking for apartments. The easiest way to do this is to pay your bills on time. If you can be on time with all payments for at least six months, but preferably a year, your credit rating should improve significantly, allowing you to get access to any apartment you wish to rent. It is important to note that credit ratings can be between 300 and 850. A score of 678 is considered average, so applicants will want to aim for this score or better. A score lower than 620 will make it very difficult to find an apartment. It is up to you to find your credit score, offered for free online through many sites, and then to work to improve it. In general, the more lines of credit, for which you make on-time payments, the better your score will be.
If you are in a hurry to move or don’t see improving your credit score as a realistic option at this time, another suggestion is to simply talk to your potential landlord. Explain your situation, noting why you have fallen past due on certain bills, and also discuss your plan for staying current on your rent. Oftentimes, landlords will be very understanding, forgiving, and appreciative of the applicant’s honesty. In turn, they will often be more willing to work out a deal with the applicant or to offer him or her an apartment.
Another option is to simply find a landlord who does not perform a credit check. This rarely, if ever, happens in large apartment complexes, but some independent landlords will forego the credit check in favor of references and a background check. There is no way to know which landlords will require credit checks, so your best bet is just to visit with several independent landlords. You should only go through the application process with those who do not require credit checks, since having one performed, even when you know the results will be bad, is a big waste of time and money, both for you and the landlord.
Remember that the best thing to do in cases of poor credit is to improve your score through hard work. If you can’t do that, then try all the other options. Eventually, if you keep trying, you will find a place to live.
