7 Credit-Related Deal Breakers for Renters

7 Credit-Related Deal Breakers for Renters

To kill an old myth, let’s begin with you must have immaculate credit for a landlord to consider renting to you. This is actually not true.  You don’t have to have immaculate credit to rent a property, but there are certain negatives that will frequently cause a rejection.

Landlords will usually reject an applicant who has had a car repossessed, or credit cards and/or utility accounts which have been charged off due to an unpaid balance. Mistakes such as a single late payment on a current account will, generally, matter less.

Here is a list of seven things that can affect you getting the lease that you want.

  1. Predictability: Your credit report will be checked for consistency (how on-time you are) and stability (the number of accounts that are open and your payment history with each account, plus the number of years you have at your current job). These add up to over-all predictability. If you can handle your financial responsibilities and if you have been working for the same employer for a number of years, then you are, predictably, a financially stable individual.
  2. Rental History: Landlords can run credit checks to learn about your past rentals. If any money is owed to a previous landlord it will show up on the credit report. This is a big red flag!
  3. Debts: Along with being able to pay on your other financial obligations, as a prospective renter, you should be able to demonstrate you can pay your rent, on-time, each and every month. A landlord can check to see how much debt a prospective renter has compared to her income. This tells the landlord if you can afford to rent the apartment.
  4. Accounts: If an account is a closed account, it should be one where the whole balance has been paid in full.
  5. Bankruptcy: Bankruptcies remain on credit reports for 10 years. If you are a discharged bankruptcy case, you are considered a better risk than if your bankruptcy is pending.
  6. Foreclosures: This is a legal action in which a lender has had to repossess a property. If there is any money owed in the aftermath of a foreclosure, it will greatly affect your credit.
  7. Credit Bureaus: There are three independent credit bureaus – Equifax, Experian, and Transunion. You never know if a landlord is going to use one, two or all three of the bureaus. So, it is important to know what your rating is with each one of them.

 

However, even if you have excellent credit, there is no guarantee that you will be accepted for a particular property. Factors such as income and criminal convictions weigh in very heavily.

In summary, what a landlord needs to know is that he has selected a responsible tenant who will take care of the property and pay their rent on time.  For more information call All County NEO Property Management at (330) 348-5200 or visit http://allcountyneo.com/