You expect your potential landlord to examine the information you write in your rental application, such as by phoning your current employer to verify that you work there. What you may not know is that they also pull up your credit cover to determine whether you have the financial responsibility and resources to pay for an apartment every month. You want to clean up this important record of your life with the following tips.
Check out your credit report. You’re entitled to one free report every year from each of the major credit bureaus: TransUnion, Experian, and Equifax. You can get this document online by visiting AnnualCreditReport.com. You want to start this process several months before you plan on renting a place because it may take time to fix what you find.
Look for any errors. Pay particular attention to amounts and payment dates. If you find mistakes, inform the issuing company and the credit bureau immediately to get it fixed.
Explain red flags. Among other things, apartment communities look for indications of financial irresponsibility or trouble with budgeting. These red flags can include foreclosures or bankruptcies, money-related lawsuits, or canceled accounts. There’s nothing you can do to fix these problems except give them time. But be prepared with good explanations when your potential landlord asks about them.
Pay off debts. Rental companies examine how much you make and how much you pay in expenses to determine whether you have enough left over to get an apartment. So, pay off as much of your charge cards and loans as you can. The lower your debt, the better a financial prospect you become.