A credit check is a formal inquiry by a commercial vendor — perhaps a car salesperson, real estate agent or leasing agent — into your standing with the three major credit bureaus.
These bureaus provide your “credit score” that helps the vendor get a better idea of your ability to pay back loans as well as your history of debt repayment.
1. Credit checks usually happen before you’re accepted for an apartment
You’ll likely have to undergo a credit check before being approved to rent an apartment. One of the primary functions of a credit check for property owners is to verify their tenants prior to offering them a lease agreement. When applying to apartments, you must usually provide information that’s necessary to run a credit check on you.
2. There are a few factors that can raise or lower your credit score
Each of the three major credit bureaus has its own “formula” to determine a credit score, so it’s hard to say with 100 percent certainty how your score is determined. However, there are several factors that are known for raising and lowering your score.
For instance, skipping payments, using a large chunk of available credit and hard inquiries into your credit are known to bring your score down. Conversely, paying on time, keeping credit usage low and mixing several different types of credit is known to improve your score.
3. You’re able to check your own credit score
If you’re curious about your credit score, you don’t have to ask a professional for help. Checking your credit score on your own at home is surprisingly easy. There are several services that will monitor your credit for free. A simple internet search should help you find what you need.
Source: Nerd Wallet
A bad credit score is not the end of the world
Having bad or no credit can certainly impact your chances of getting your dream apartment. But, there’s always something that can be done about it.
If you have bad credit, do some research and honestly examine your financial standing. Make appropriate adjustments and check your score again in six months — you’ll likely be shocked at the improvement.
