Credit Score and How Does it Affect Renting an Apartment

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Having a good credit score is a big factor in being qualified in renting an apartment. Most landlords are requiring a credit report to the tenants who are applying for their apartment this is their way to know if the person has no problem with regards of their finances and has the capacity pay monthly rents on time.

Credit score is a measurement of how good you are in repaying your loans on time. Having a good credit score and history is used by a. banks whether to qualify you in a loan, b. business establishments to determine if you are credible to transact with them and c. landlords if you are good in paying your responsibilities while living in an apartment. 

There are five elements that a credit score has: 

1. Payment history which includes the records of payments that you have had, number of payments, delinquencies, and other information about your recent payment activities. 
2.  The amount owed which includes the available credits and balances you have, total amount owed and other information on the amount you owe in your account. 
3.  Length of credit in which it indicates the time your account was established which you need to maintain having a good credit score for years to give an impressing data to people who will look at your credit score. 
4.  New credit which includes the number of accounts you have opened. 
5.  Types of credit in use this is to know how are you managing your credits and the diversification of your credit lines.

Having a good credit score is a big factor for being qualified in an apartment because landlords will have an idea on how do you pay your bills and the delinquencies that you have had in the  past. There is a big possibility that you will be qualified to live in an apartment for rent or condo for rent if you have a good credit score because this is one characteristic most landlords look for. The idea is simple, if you want to have good financial reputation, start on having a good credit score.

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