Are you thinking of getting your first apartment or moving into a new one? It can be difficult to get approved for a lease if you have a low credit score. Many people feel discouraged that they have limited housing options when their credit score is not as high as they would ideally like it to be. However, this does not mean your credit can’t improve over time. In fact, with the help of a credit repair clinic, you can repair your credit score and increase your chances of getting that dream apartment you’ve been searching for.
Know What’s In Your Credit Report
Before asking the landlord or property manager what credit score range they accept, it’s better to know your current credit score by requesting your credit report. Once you download your credit report, it’s very important to review it carefully. If you have a history of credit usage, you will see it in your document. If you have student loans or credit card balances, you will see them, and so will the property manager. As you examine your credit score information, look out for negative marks or erroneous information you think is wrong. In this case, you can dispute those errors and repair your score with the help of a reputable credit repair clinic.
Take Steps to Improve Your Credit Score
Improving your credit score in the best way possible will help to know how your credit score is calculated. For example, the most well-known FICO score model looks at five key factors such as 1) payment history, 2) amounts owed, 3) length of credit history, and 4) credit mix. The two most important criteria to consider are payment history (your track record of timely credit payments, which makes up 35% of your score) and amounts owed (the total amount of credit and loans you are currently using compared to your total credit limit, which makes up 30% of your score). In order to quickly see an improvement in your credit score, it’s highly recommended to pay off as much debt as possible.
Don’t Borrow More Credit.
As a rule of thumb, don’t apply for new credit cards or loans as tempting as it may be when you see those credit card offers come through the mail. Avoid it if you can because it’s considered a “hard inquiry” into your credit history when a lender performs a credit check. These inquiries appear on your credit report pulled by the lender and may decrease your credit score. A recent decrease in your credit score can send up red flags to potential landlords, which can have a negative impact on your eligibility to rent.
Build Up Your Savings
Preparation is key to renting a new apartment, especially if you plan to live there for the long term. Make sure you calculate your living cost, including rent, utilities, groceries, gas, and other expenses, so you know for a fact that you can afford your dream apartment. If you live rent-free with a family member and are working from home, you can even “practice paying your rent” by transferring a set amount (hypothetical rent) to your savings account and see how much you have leftover each month in your checking account.
You now know the steps to take to improve your credit score so that you can get approved for your dream apartment. By following these steps and monitoring your credit report regularly, you can be sure that you’re on the right track to financial success. Remember, your credit score is important not just for getting an apartment but also for many other aspects of your life. With a little time and effort, you can have the bright future you deserve.
