What Landlords Look for in Your Credit Report

apartment livingI remember when I rented my first apartment, my landlord asked me for my information for a credit check. Having just finished my freshman year of college, I had no credit history to speak of let alone any clue what they might want to know from my credit history. I had a cosigner for my first apartment but through the years I’ve had to make sure my credit score is good so that I can continue to be able to rent an apartment. A landlord wants to ensure that the tenants they select are responsible and will take care of their property and pay their rent on time. Performing a credit check on a prospective tenant can give a landlord a reasonable indication of what to expect from that tenant.

Here is what most landlords actually look for when they check your credit report:

It’s a no-brainer that the more debt you have, the less likely a landlord is willing to rent to you. Landlords run credit checks to see how much debt prospective tenants have. Once they know your debt load, they often compare that to your income to see if you can afford to rent the apartment while still being able to pay off your debt. If your income and debt load do not match up, the landlord will not be likely to rent to you.

Consistency and Predictability
Landlords look at a potential tenant’s credit report for evidence that the candidate has established consistency, stability and predictability in their finances. Consistency is demonstrated by what a prospective tenant does over and over financially. If a credit check reveals that a borrower has on-time payments with several accounts, over several years, then he or she is consistent. Stability can be determined by a number of factors. The number of years you’ve held a job, the number of accounts you have open, and your payment history all contribute to stability. A potential tenant who can handle his or her financial obligations and works for the same employer long-term is a financially stable individual. Landlords check credit reports to predict the behavior of the person who will be renting the property. The more consistent and predictable you are with your job and your finances, the more likely you are to be approved to rent an apartment!

 Rental History
A landlord can check a prospective tenant’s rental history through a credit report. A landlord can use rental history data to see where you have lived and make inquires concerning your previous rental agreements to see if you paid your rent on time or owe any money to your previous landlord.  They will check your rental history for predictions on your future behavior as a renter. Rental payment history only goes on your credit report if your landlord reports your payment history to a credit bureau. One of the main ways I build credit is through paying my rent. I don’t have any other big expenses to build credit with other than my rent so I pay my rent online through WilliamPaid and they report my payments to a credit bureau so that every time I pay my rent on time each month, it goes towards building my credit. This helps not only my personal credit but also makes me more likely to be approved for an apartment in the future!

Submitted by WilliamPaid.com. WilliamPaid lets renters & roomies pay rent online, automatically, with more flexibility and it’s FREE. Users can also build credit with each rent payment.