7 Ways to Improve Your Credit Before Renting an Apartment
You found the apartment of your dreams. The layout works and the rent is within your budget. Then the leasing agent asks to run a credit check, and suddenly you’re wondering what they’ll see.
A weak score can lead to a denied application, a larger security deposit or a request for a cosigner, even when your income covers the rent. This guide walks through seven steps to strengthen your credit so you can approach your next lease with more confidence.
#1: Check Your Credit Report for Errors
Pull your own credit report before a landlord or property manager does. Reviewing it before someone else does gives you time to fix any issues. Mistakes are more common than you might think, including accounts that aren’t yours and on-time payments incorrectly marked as late.
You can request a free report from Equifax, Experian and TransUnion at AnnualCreditReport.com. If you spot an error, file a dispute with the bureau that reported it and include documentation that supports your case. Corrections can take a few weeks to process, so the earlier you start, the better.
#2: Pay Down Existing Debt
One of the factors that shapes your score is your credit utilization ratio, which compares the balances on your accounts to your total available credit. When that ratio climbs, your score tends to dip.
A common guideline is to keep your utilization under 30% of your available credit. If you’re carrying more than that, focus on paying down balances before you apply. Give the change time to register, too. Card issuers usually report to the bureaus once a month, so making a payment at least 30 days before you submit a rental application gives the agencies time to update your report.
#3: Pay on Time
Payment history carries more weight than any other factor in your credit score. A single missed payment can linger on your report for years, while steady on-time payments strengthen your credit month after month.
Setting up autopay for at least the minimum monthly payment on each account is a simple way to protect yourself. If you have any overdue accounts, bring them current as soon as you can.
#4: Look for Credit-Building Tools
Some tools let you get credit for payments you’re already making. Experian Boost connects to your bank account and adds qualifying payments, such as utility bills, phone payments and select streaming subscriptions, to your Experian credit file.
Tools like that tend to help most if you have a limited history. Read the details before you sign up, since each service reports to different bureaus and offers varying qualifications.
#5: Avoid Opening New Credit Accounts
When you apply for new credit, the lender runs a hard inquiry, which can shave a few points off your score. Opening a new account also lowers the average age of your credit, another factor that scoring models weigh. A single inquiry is minor on its own, but several in a short window can add up.
If you’re planning to move, hold off on opening new credit cards, auto loans or other applications for a few months beforehand. Keeping your credit activity steady in the lead-up to your rental application helps your score hold steady.
#6: Use Rent Reporting Services
Rent is likely your largest monthly payment, and until recently it did nothing for your credit. Rent reporting services changed that by sending your on-time rent payments to the credit bureaus, which adds positive payment history to your record. If you have limited credit history, that service can help you establish a score even if there isn’t much to measure.
Several services handle this without requiring your landlord to sign up, including Esusu, RentReporters and Self. Costs and features vary, and some report to all three bureaus while others report to just one, so it’s worth comparing a few before you commit.
#7: Be Patient
Credit doesn’t rebuild overnight. Most of the previous steps take time to show up on your report. Giving yourself a few months before you plan to apply is one of the most useful things you can do.
Patience also protects you from mistakes made in a rush, like opening a new account or moving money around in ways that backfire. Steady habits are what move a score in the right direction. By the time you’re ready to apply, you’ll be in a stronger position than if you scrambled at the last minute.
Find Your Ideal Apartment in Columbus, Ohio
At Ardent Communities, we understand that credit is only one piece of your story. Our team offers pricing options based on your credit profile, so a lower score doesn’t automatically close the door on the apartment you want.
Ready to find your next home in the Columbus area? Contact our team for more information, and take a look at our renter’s guide to understanding lease language and our tips for first-time renters while you plan your move.
