Whether you’re a regular renter or the first-time renter, you need an excellent credit score. A credit check is needed for you to move into a new home or property in the UK. By passing the renting credit check, you prove to a potential landlord that you’re great with money. It also shows the landlord that you can comfortably keep up with your rent. Incase your credit score isn’t good, you’ll most definitely fail the credit check and the application to rent would be rejected.
Luckily, there are different ways through which you can quickly boost your current credit score. The following tips will help you know how you can improve your credit rating to pass the renting credit check.
Check Out Your Credit Report And Report Any Errors
First and foremost, as you seek a way to improve your credit rating to pass the renting credit check, you need to start by checking your credit score. The good news is that you can get 3 free credit reports every year, one from any of the main credit bureaus including TransUnion, Equifax, and Experian. These reports keep records of all your financial history, and it won’t do you any harm to request a report from any of them.
After getting the credit report, you can take a few minutes to thoroughly review it. Remember to report any mistakes or inconsistencies you find, as this might harm your credit score. You should ensure all these errors are taken care of beforehand to avoid disappointments down the road.
If the credit reports are accurate and don’t show any inconsistencies, you should review all areas, which hurt your credit score. In doing so, it will be easy for you to find the areas that need any improvement before you apply to lease the apartment.
Keep Credit Use Low
Credit use plays a significant role in the determination of your credit score. In simpler terms, this refers to the ratio of the amount of money you owe as compared to your credit limit. Experian experts have stated that credit use of fewer than 30% is the best deal.
To keep the credit use ratio low, ensure you’re in a position to pay your balances. You should consider making extra small payments during the month to keep the balances in check. You should avoid closing any unused credit cards because this will have a very negative effect on your credit utilization ratio.
Incase your credit utilization ratio is low; you should ask whether your credit card company can increase your limit. If you continue making payments on time, this ratio will continue to decrease and the credit score will increase.
Make Payments On Time
An easy way to ensure you maintain an excellent credit score is by clearing your bills on time. Keep in mind that this isn’t only limited to the credit card bills; it also includes your loans, utility bills, and other bills.
Incase you have any late payments, the credit score drops to reflect that. It’s for this reason you need to stay on top of all your bills. However, late payments won’t have a lasting impact on your credit score and the credit score will soon recover as you clear the bills.
To ensure this doesn’t become a problem, you can create constant reminders on your phone or calendar so you always remember when you need to make some payments. Also, you should try out automatic payments to ensure you never miss out on anything.
Other Useful Tips
If the credit score is lower than you would want, you might not be completely out of luck. This is because there are a number of things you can do to ultimately build trust with the landlord and boost your chances of passing the renting credit check.
If you resided in a different property in the past, request your previous landlord to give you a letter of reference. Another great alternative is to determine your monthly income and share this information with the new landlord. A stable income shows the landlord that you can comfortably afford to pay the rent with no issues.
Finally, if your roommate has an excellent credit score can also help as you continue trying to improve yours. Also, offering a large amount as a security deposit shows the landlord you’re trustworthy.
Toua, M. (2021, June 11). Credit checks renting: How can I improve my credit rating and pass credit check. Express.co.uk. https://www.express.co.uk/life-style/property/1292075/credit-checks-renting-how-to-improve-credit-rating-pass-credit-check
Renters who pay on time get better credit score. (2018, October 23). BBC News. https://www.bbc.com/news/business-45956793
Martin, A. (2015, February 25). 5 tips for renting a home when your credit is poor. Yahoo | Mail, Weather, Search, Politics, News, Finance, Sports & Videos. https://www.yahoo.com/news/weather/5-tips-renting-home-credit-153000371.html