Renting a home in New York: why do landlords check your credit history and what data are they looking for

When you want to rent an apartment in New York, landlords usually check your credit history. But what exactly are they looking for? Because of what your misconduct may refuse to rent out housing in New York. These questions were answered by Brick Underground.

Most landlords in New York pay attention to one thing first and foremost - your credit score. Their preferences may vary depending on the type of apartment you are trying to rent. But, according to brokers, most of them want to see a credit rating of at least 675-700 points.

If they see a low credit score, they will start looking for what ruined it. Some may scrutinize your credit report if they are choosing between multiple tenant candidates.

“The rental market is competitive and landlords have a choice,” says David Schlamm, founder and chief broker of the company. City Connections Realty.

He went into detail about what homeowners look for in the credit history of potential tenants, and what may cause them concerns.

You completely missed a credit card payment

Schlamm says late payments, or worse, missed payments, are what most often ruin credit history and put landlords on their guard. This can happen randomly with a small score. For example, with a $56 balance in your medical bill or an $83 Verizon bill you forgot to pay.

Problems can arise if the company tried to get you to make a missed payment, but failed, and then closed the account and sent the debt for collection. This is a rare, worst-case scenario that you definitely want to avoid because it damages your credit badly.

You have exceeded your credit card limit

A credit report has many details about your credit cards, including account balances, monthly payments, and credit limits. You may have a habit of paying your credit card bills when you are close to your credit limit. Or you just don't know how to control your expenses. Most landlords don't care why you used too much credit card money. It is easier for them to refuse such a candidate, because they do not want to take risks.

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You take on too many loans

Applying for large loans—buying a car, getting a mortgage, getting another credit card—leads to tough credit requests, and they can lower your credit score. In essence, these requests signal that you are about to take on even more debt.

So if you're looking for a new home, it's best to postpone loan requests until you're eligible to rent an apartment.

You are a victim of identity theft

Identity theft in the past is a huge barrier to renting a home in New York. When thieves open a credit card in your name and then don't pay bills, it takes a toll on your credit history.

There is plenty of advice on what to do if you are the victim of identity theft. The first step is to report fraud to credit bureaus. It's free and available from three nationwide credit bureaus. Fun fact: you only need to register a complaint in one of them, and it will report what happened to the other two.

If you have been the victim of identity theft and are trying to rent an apartment, then it is worth providing a letter explaining the situation and a confirmation package. documents to a potential landlord. Consider letters of recommendation from multiple landlords (if you've rented before). A letter from the employer will also not be superfluous. Be sure to discuss all this with your agent or broker.

What You Can Do to Improve Your Credit Score

First, you need to follow him. Federal law allows you to receive a free copy of your credit report every 12 months from every company that provides such reports: Equifax, Experian и TransUnion.

Secondly, use the applications Esusu, Built Rewards и Piñata. They report your timely rent payments to the credit bureaus. This is a new way for tenants to build a good credit history. Your home may have a rental payment service that notifies these apps of timely rent payments. If not, you can ask your landlord to consider providing such a service.