Whether you fell behind in making car payments or had difficulty paying every bill after a divorce, it’s not hard for your credit to take a negative hit. A low credit score may make it harder to secure a mortgage or credit card in the future. The encouraging news is there are ways to get back on good financial footing, including securing an apartment rental. Here’s how leasing can help. 

How Renting an Apartment Rebuilds Credit

1. Establishes Timely Payment Record

A credit score ranges from 300 to 850 and looks at such factors as outstanding debt and how long you’ve had credit. Making timely payments is another key area.

When you consistently pay your rent on time each month, many landlords will record this payment history to the credit bureaus. If you haven’t missed any of your apartment rental payments, this will help increase your credit score. Make a commitment to paying what you owe on time every month to start reaping the rewards.

2. Proves Sound Financial Management

Though apartment rental leases vary, most tenants are responsible for paying utility bills. These include electricity, gas, water, and trash collection. Utility companies also report payment records to the credit bureaus.

If there are instances of late or missed payments or if you fail to disconnect service after your apartment lease is up, these scenarios will likely be reported. Get in the habit of paying all of your utility bills by their due date to help improve your credit score. If you’re experiencing financial hardship, contact the companies before the payment is due to arrange for an extension. 

3. Builds Credit Card History

If your landlord allows it, consider paying your rent with a credit card, as this will give you an extra way to boost your credit. Auto loan providers and other lenders will check your credit report to see how you managed credit card debt. If you’ve faithfully paid your apartment rental obligations on time each month, you’re well on your way to improving your credit score.

The key is to pay the card’s balance off in full each month. Make sure this is done by the card’s due date, and never miss a payment. It’s also important to have a high enough credit limit so that your rent doesn’t take up the entire amount. 

By being financially proactive and diligent, an apartment rental payment can raise a low credit score. Tudor Oaks Properties in Ashland, KY, wants to help you recover. The firm offers affordable and beautiful apartments, homes, and townhouses for rent with a full array of amenities, including furnished kitchens. Their listings in Ashland, Boyd County, Russell Flatwoods, and Bellefonte feature rentals for single individuals, families, and everyone in between. Visit the website to explore available properties and fill out the rental application. Call (606) 325-1240 to speak to a friendly leasing agent.