If you’re about to make a major purchase, you’ve probably thought a lot about your credit. Whether you’re applying to rent a new apartment, lease a car, or take out a loan, your credit report will likely play a bit part in the success of your application. This is why it is important to understand your credit score. Many renters are worried about their credit scores because they don’t know how their scores will affect their chances of signing a lease. Today, Renter’s Voice answers a few imperative questions to help you better understand the ins and outs of your credit report.
What is my credit score based on?
Your credit score is calculated by analyzing your financial history. It consists of the amount of debt that you currently have, if you pay your bills on time, how long you’ve been employed, and much more.
How do I know if my credit score is bad or good?
Credit scores normally range between 300 and 850, with 850 being the best possible credit score. When that number falls below 620, that’s when you need to work on cleaning up your credit because not only are you considered a ‘high risk’, but that score can reflect poorly on you when you’re applying for an apartment.
By looking at your credit report your potential landlord will be able to tell if you are going to be a reliable tenant. This is essential information for the landlord because you will be expected to pay for your rent and utilities on time each month. Also, a potential landlord is usually interested in your credit report because it shows your rental history. With that information, they can check your previous residence to see if you were a good tenant or not.
How can I find my credit score?
There are multiple credit reporting services offered online and at your local bank. If you’re trying to fix bad credit, you will find these credit services extremely helpful. If you don’t need to clean up your credit, it is a best practice to check it every year to make sure that everything is correct. First, you should request your credit report from each of the three credit bureaus since you are allotted one free copy each year. Next, analyze the report to verify that there are no false reports, and so you are aware of what your prospective landlord will see.