Applying for Apartment in New York City? Good Credit Counts A LOT!

There are few things more disappointing than finding the perfect apartment only to lose it because of credit problems.

It is a harsh reality; landlords are in the business of property. The key word being business. You wouldn’t expect a bank to issue a credit card to someone who failed to pay their credit card bills. You wouldn’t expect a finance company to offer a car loan to someone whose car had been repossessed. Yet time and time again, applicants are surprised that a landlord won’t offer them a lease when they have proven to be financially untrustworthy.

Check your credit report BEFORE you start your search. Waiting to discover a credit problem until you have already mentally moved into your dream apartment is a sure fire path to disappointment. Landlords are not going to wait around while you try to sort out credit problems. They will simply move on to the next applicant. While it is true that different landlords have different financial and credit criteria, almost everyone is going to expect proof that you are a good financial bet. With potential renters out weighing available units, landlords can afford to be selective. With the tremendous financial loss that they can sustain from non-paying tenants, landlords can’t afford not to be.

Some people are surprised to find unflattering information in their credit file. Identity theft, mistaken identity (common when family members have a similar name), or outdated credit information can give the impression that even the most financially responsible is a bad credit risk fro landlords. Discovering and correcting misinformation prior to applying for apartments will save you a tremendous amount of time, money, and heartache.

Most people who have bad credit however are not so surprised. If your mail box is flooded with past due notices or you have had credit accounts closed due to non payment, your credit report will reflect your financial position. Obviously not everyone with bad credit is a “dead beat” or is financially irresponsible. Job loss, medical problems, and family emergencies can create a situation where even the most financially responsible person can find them self unable to make ends meet. Finding ways to counter your bad credit will be essential to apartment renting success.

If you have irreparable bad credit, consider either finding a guarantor (co-signer) with excellent credit or save so that you can advance pay your rent or offer additional money as a deposit.

originally posted October 14, 2006