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While apartment hunting is certainly exciting, it raises a number of questions about the financial well-being of the renter. As someone looking to rent an affordable apartment, it’s crucial to consider how the monthly payments will affect your credit score. Contrary to common belief, apartment rentals go a long way towards bettering your credit and improving your overall financial standing. 

How Credit Benefits From Smart Renting

1. Build Credit History

If you’re a young renter, you may not have much credit history. While this isn’t necessarily a bad thing, having little or no credit makes it hard for future building owners to sign off on your lease. However, if your new landlord reports your rental history data—paying rent on time—to the three main agencies, you’ll slowly start to build your score. Speak to your apartment manager about whether they can send this information to Equifax, Experian, and TransUnion to boost your numbers. 

2. Improve Credit Score

affordable apartmentsIf your current credit score is less than ideal due to a mistake you made in the past, you can renew it with your affordable apartment. With a steady income, you can easily pay your rent with your credit card on time. Consistent credit usage and repayment will prove to creditors that you have what it takes to use your card wisely, and in turn, you’ll be rewarded with a better overall score and likely a higher credit limit. 

3. Reduce Hard Inquiries 

Each time you fill out an application to rent a new apartment, the landlord will do a credit check, resulting in a hard inquiry on your score. Each one can slightly lower your stats and remain on your history for about a year. When you find and commit to an affordable apartment, you won’t need multiple landlords checking your numbers, limiting the amount of hard inquiries. If you stay in your new place long enough, former ones will disappear, leaving your record cleaner than it was when you began your residency. 

 

If you’re looking for a new apartment in Vernon, CT, or Myrtle Beach, SC, A1 Properties offers spacious and affordable one- and two-bedroom rentals and a helpful staff to help you feel at home. They’ve cultivated a beautiful and functional community for both singles and families to enjoy. Contact them online, or give them a call at (860) 490-5205 to schedule an appointment today.

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