Monday, July 11, 2005

Can Low Credit Scores Affect Rental History?

Can Low Credit Scores Affect Rental History?

Having a low credit will not just reduce a your options for getting loans and raise interest rates, it may also preclude you from renting some dwellings. You can rent with a low credit score, but it may take more work.

Function

    Not all landlords run credit checks on their applicants. Even those that do pull up credit scores will consider other factors when deciding who can rent from them.

Considerations

    A person with a low credit score can probably still rent at a place that runs a credit check, but only with someone who will co-sign on the apartment and/or pay a hefty security deposit.

Rental History

    As long as a person can prove that she has always paid rent on time, is a quiet, respectful tenant and has good references, the landlord will probably forgive a bad credit history.

Prevention/Solution

    People planning to rent should start improving their credit scores well before their apartment hunt. The major credit reporting agencies are required to give people one free credit report each year. Those with low credit scores should identify problem areas and start correcting them immediately.

Tip

    According to MyNewPlace.com, small apartment complexes and privately owned rental units are the most likely places not to run a credit check on a potential renter.

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