You may need even stronger credit rent a home these days.
You may have heard that the higher your credit score, the higher financial flexibility you will have. Strong credit increases your chances of getting approved for a new credit card, car loan, or mortgage. And if you’re looking to rent a house rather than buying one, a solid loan could be your ticket to a lease.
In fact, the average credit score required to get an apartment is on the rise. Over the past three years, it has increased by one point per year, RentCafe reports. And in a study of more than 5 million rental applications, the average credit score of U.S. renters was 638 in 2020.
Not surprisingly, the tenants of high-end buildings tended to have better credit – an average score of 669. On the other hand, renters in lower-end buildings had an average score of 597.
Either way, having good credit could be the difference between getting your name on a lease or having to go back to your parents. Or surf on your couch without an owner ready to welcome you. And so, if yours isn’t where it should be, here are some steps you can take to boost your credit score. Here’s how to get starter loans no credit check online
THE AVERAGE CREDIT SCORE IN THE UNITED STATES REACHES AN ALL-NEW LEVEL SEE HOW YOUR STATE COMPARES
1. Pay all incoming invoices on time
Your payment history is the most important factor that goes into calculating your credit score. This indicates how well you pay your bills on time. If you want that number to grow, don’t be late with your bills, it’s that simple. For the most part, that also means paying all of your bills in full, although there are exceptions. For example, suppose you submit your minimum credit card payment each month before its due date. You will be considered on time for credit score purposes, even if you carry the remainder of your balance.
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2. Pay off some of the existing credit card debt
Paying off debt is easier said than done, but if you are able to reduce an existing credit card balance, it could really do wonders for your credit score. The less unpaid credit card debt you have, the lower your credit utilization rate will be. It is a measure that calculates your existing debt against your total available credit.
A ratio of 30% or less will help your credit score, so take a look at how much credit you have and compare it to what you owe. Maybe your total spending limit among all your credit cards is $ 10,000 and you have a balance of $ 3,400. In this case, paying $ 400 will lower your utilization rate in more favorable territory.
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3. Check your credit report for errors
Sometimes mistakes happen on credit reports. If there’s a mistake on one of yours that works against you, your credit score could go up if you fix it. There may be a credit bureau reporting past due debt that you never ran up in the first place. Or maybe your credit report still shows debt you paid off a long time ago. Request a copy of your report from every office – Experian, Equifax, and TransUnion – and see what happens. You may need to contact one or more offices to eliminate the errors, but it will be worth it when your score improves as these issues are resolved.
When it comes to renting a home, there really is no minimum credit score requirement. Each homeowner will ultimately decide what credit rating they are comfortable with. But the higher your credit score, the more likely you are to be approved, so if that number needs a boost, get moving – before it’s time to sign a new lease.
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