After living at home or bunking with friends, you’re probably excited about searching for a new place to live. However, if the recent application you submitted to your dream apartment complex was rejected due to your personal credit history, you may not know how to proceed. Below is what you need to know about how credit impacts your ability to rent an apartment and what you can do to improve your financial situation.

How Your Credit Is Assessed

Most landlords want tenants who are able to pay their rent on time and have proven they are responsible for managing finances. When you apply to an apartment, many managers will run a background check, and that includes pulling your credit report. This important document shows all of your current and past debt obligations. 

Credit reports list transactions such as credit cards, car loans, student loans, out-of-pocket medical expenses, and water, cable, and electricity bills. The report indicates factors such as outstanding balances, late payments, and whether certain bills were not paid off. Any bankruptcy filings, car repossessions, and foreclosures are also included.  

Landlords review the items to determine if potential apartment rental applicants missed payments or defaulted on loans. They want to see a pattern of on-time payments. A consistent record means they will likely do the same with their rent payments. In addition, a high credit score is another indicator of strong credit. Scores range from 300 to 800. The higher the score, which is generally in the 700 range, the greater your chances of being approved for an apartment lease.

How to Improve Your Credit

The encouraging news is that there are ways to boost your credit score and improve your debt management. One way to start is by making a commitment to paying your bills by the due date or earlier. When using a credit card, pay the balance off in full each month. While it’s normal for some to have several lines of credit open at one time, the key difference is not maxing out credit and staying on top of payment management. 

While you’re taking steps to improve your credit, maintain full-time employment. Because regular, on-time rental payments will typically depend on having a job, landlords also review how long you’ve been employed. If you were proactive about paying rent on time at your previous apartment, provide a reference from the landlord as proof. 

By taking a few proactive financial steps, you can move into your dream spot. For more than 20 years, Eagle Realty & Investment in Statesboro, GA, has helped individuals by providing affordable apartments with a host of exciting amenities. The family-owned rental company features living spaces designed to accommodate your unique lifestyle. What makes the team unique is its 100% commitment to superior customer service and immediate response to any concerns. To view the list of properties available for rent, visit the website. If you have questions or need additional information, call (912) 871-0333.