When looking for apartments or real estate lowell ma in Lowell, MA it is important to remember that both landlords and mortgage companies will do a credit check. While poor credit is not always a harbinger of not being approved for a mortgage or rental it can make it much more difficult. Often, people with poor credit will either need to provide additional proof of funds to show that they can pay for the property or have a co-signer.
Rental History
Prior to renting, landlords will look at a person's credit report for proof that the individual has always paid their rent on time and was a good tenant who did not have any issues with other renters in the building or the property management company. Prior rental history is used to predict future behavior. While a landlord may not directly reject an applicant who has never lived in an apartment, it may be more difficult. In these cases, offering additional proof of income or personal references from close friends or an employer may be sufficient.
Debts
Not only does a credit report contain information about open accounts, but also it examines any previously closed accounts. If a person has a closed account with a balance due, this is a red flag tht may cause the lender or landlord to deny the applicant the property. Individuals who pay their balances on time every month will have a high credit score.
Bankruptcy
Although it can vary from state to state, the vast majority of bankruptcies remain on a person's credit report for ten years. Typically, a bankruptcy is a person's last resort because it will cause their credit score to tank. Because everyone can make mistakes, people who have a bankruptcy will want to prove that they have made reparations for their past mistakes and are now working to rebuilt their credit and financial situations.
Credit Bureaus
Keep in mind that there are three different credit bureaus that may be used for a credit check - Equifax, Experian and Transunion. Given that these credit bureaus are independent companies, a person's score may vary slightly from one to the next. Because it can cost money to obtain a credit report, keep in mind that their landlord will often pass this cost on to the applicant in a small fee.