When people are looking to rent an apartment, condo, or home, they have to go through a lot in order to get approved. There are a lot of things that go into the application process, including the dreaded credit check. Landlords do this credit check because they need to be sure that the person that they are renting to will be able to pay them their rent and utilities on time. Having a good credit score and a good credit report is essential in order for a landlord to approve your application and rent you a place to live. If you are a first time renter, you may need someone to co-sign with you in order to get the application approved.
When looking at a credit report, the landlord will want to make sure that there is evidence to prove that you have made payments that were consistently on time in your past. They will look at how many accounts that you have had over the past few years, and see how well you paid these accounts. They will also look at your work history. If you have worked for the same employer for a long period of time, and you have always paid your bills on time while working for this employer, then you are consistent, which is good in the landlord’s eyes. They will be using the credit check to predict your habits while renting from them.
Landlords will also look at the amount of debt you have compared to the amount of money that you are making. The landlord wants to make sure that you will have enough money to pay your debt alongside the rent and utilities that you will be paying. If the debt is overwhelming, they may not approve your application because they do not believe that you will be able to pay both. If the debt gets out of hand, you may not pay the rent, and that is not good news for the landlord.
A credit check will also show your rental history. Any landlord can report a tenant’s payment history to the credit bureau, and it will show up on the credit check. Your future landlord will be looking to see if you owe any past landlords any money, as well as to see if the rent was always on time or not. If you have had good behavior with past rentals, it will play to your favor in applying for another rental.
When a landlord is looking at a credit report, they will also be looking for things that may have affected your legal record. Credit checks can tell the landlord if a person has been convicted of a crime in any state, or if they have been arrested, if they have been involved in any lawsuits, and they can tell a landlord if a person has ever been evicted (this piece of information can vary from state to state).
When you are applying to rent a place, you should check your credit report before giving it to a landlord. This way, you are not going into the application process blind. You will know what they are looking for, and you will know what your chances of getting a rental are, which is very beneficial.